Bitcoin, the largest digital currency by market capitalization, rallied above the $4,000 level recently and is up 1.86 percent the last 24 hours, but some crypto market observers remain bearish on the leading digital currency.
Until the cryptocurrency that was once the toast of the town can resuscitate itself and get out of its latest correction, it calls to mind market bubbles of the past that elevated investors into a state of euphoria before unceremoniously popping and crashing down to earth.
“The Bitcoin price dropped almost 80% over the year, dragging the crypto market with it. Short-term bulls believe the market could be ripe for a bullish run. They cite the steady increase in Bitcoin’s trade volumes and transaction rate,” reports CCN.
However, at least one digital currency market observer remains bearish on bitcoin.
“Researcher and cryptocurrency analyst Willy Woo believes this might not be the case. In a set of tweets, Woo argues that the on-chain volumes are just too little for a sustained run. He cites volatility as a reason for the increased on-chain volume seen in recent weeks,” according to CCN.
Issues To Deal With
Among the issues plaguing bitcoin ;last year were the ongoing unwillingness of U.S. regulators to approve bitcoin-related exchange traded funds as well as data indicating that mainstream acceptance and adoption of the digital currency are declining.
“Woo had predicted a bearish outlook for bitcoin in November 2018. He argued that the downward pressure on the world’s most popular cryptocurrency could persist till the second half of 2019,” reports CCN. “He cited data from NVTS, which he said had broken below its support levels. Woo concluded it was unlikely for Bitcoin to break above its 200-Day Moving Average (DMA).”
Other analysts echo Woo’s bearish sentiment on bitcoin and the digital currency market.
“Xiao Lei, a currency policy analyst, attributed the Crypto Winter to the meteoric price spikes that virtual currencies experienced in 2017, saying such explosive growth was unsustainable. As a result, the market reacted by tumbling,” reports CCN.
For more information on the cryptocurrency market, visit the Bitcoin category.