Last week was a pretty bearish week for the crypto market. A lot of digital currencies experienced sharp declines in a matter of hours. The massive declines even started from the world’s largest digital currency – Bitcoin (BTC). Bitcoin (BTC) declined sharply early hours of Thursday and carried the altcoin market along.
Nevertheless, this week came along with some bullish sentiments for the market. The value of Bitcoin (BTC) increased significantly on Monday. Bitcoin (BTC) surged by about 10 percent and it also carried the altcoin market along.
Bitcoin (BTC) broke out of its triangle formation. An analyst said the digital currency would have tested another crucial level if it had held its position. The digital currency wasn’t able to hold the gains it amassed earlier this week, as it now trades in the red.
Bitcoin (BTC) Price Today – BTC / USD
According to the market analyst at Daily FX – Nick Cawley, the recent price action of Bitcoin (BTC) shows a quick selloff. But it broke the downward triangle and it needs to be monitored carefully. Cawley said if Bitcoin can break and close over this triangle in the next couple of sessions, it will signal the return of bullish sentiment. This can cause the value of the coin to return towards the 200-day MA and surge higher towards the $7,300 level.
Vinny Lingham Predicts another Bitcoin (BTC) Bubble
Vinny Lingham – the CEO of Civic – recently talked about the future of blockchain apps and the digital currency market. He talked about the market in the Chain Reaction event that took place in Johannesburg this week. The event was hosted by BECSA (Blockchain Entrepreneurs Club South Africa). A lot of high-profile speakers were at the event to talk about the crypto industry and blockchain technology.
The event saw the likes of Riccardo Spagni – Monero lead maintainer. Marius Reitz – Luno country manager for South Africa – was also present at the event.
Lingham said that the blockchain industry is still far away from mainstream adoption because of scaling obstacles and lack of use-cases. He said that blockchain technology is still in the infancy even though it’s almost 10 years old. He added that the fundamental use case for digital currency besides moving money is trading.
Lingham said this will eventually change as several use cases for blockchain start to emerge. He noted that blockchains need to scale to be able to handle these kinds of speeds and capacities that conventional payment system such as Visa offers.
Regarding the value of Bitcoin and other digital currencies, the CEO said the increased amount of investor interest in 2017 pushed the value of the coin higher. It also increased the number of Initial Coin Offerings that were hosted.
He said there is more supply of ICOs than buyers at the moment. This has contributed to the decrease in the value of Bitcoin (BTC) and other digital currencies. Lingham said he believes there will be another bubble. He said it might happen again because people don’t learn.
Lingham said when the value of Bitcoin (BTC) hits $20k again, it will likely fall back to $100. The CEO said it is better for Bitcoin (BTC) to have a steadier and slower growth. Adding that it should stay from the limelight until it has a well-developed infrastructure.