By CCN: The bitcoin price is trading higher headed into the weekend and is currently hovering at $8,572, up 2.7%. After the recent spike beyond $9,000 and dramatic fall back to Earth, the market clearly is doing its best to go higher.
Just ask Vinny Lingham, who is at the helm of blockchain-fueled ID startup Civic and a general partner at Multicoin Capital. Lingham, who has only recently turned bullish on the bitcoin price, tweeted:
“This BTC action looks aggressive. Makes me think that we may blow through 10k and test $12k very soon; but $12k is a very heavy resistance level, so I would expect consolidation around the $10k level for some time if $12k is (likely) rejected.”
According to reports, Lingham-backed up-and-coming South Africa-based crypto exchange OVEX has completed a second fundraising round.
This BTC action looks aggressive. Makes me think that we may blow through $10k and test $12k very soon, but $12k is a very heavy resistance level, so I would expect consolidation around the $10k level for some time if $12k is (likely) rejected.
— Vinny Lingham (@VinnyLingham) May 31, 2019
Bitcoin Is Stabilizing
Technical trader Peter Brandt reflected on Thursday’s correction in the bitcoin price, asking if it was ‘enough to shake the…FOMO buyers from the trees.” He later observed that “BTC appears to be stabilizing after the 12% break on Thursday,” saying:
“I am willing to dip my toes back in the water.”
$BTC appears to be stabilizing after the 12% break on Thursday. I am willing to dip by toes back in the water. pic.twitter.com/wjoPKfY34c
— Peter Brandt (@PeterLBrandt) May 31, 2019
Still, Brandt doesn’t expect bitcoin to achieve wide-scale adoption anytime soon, tweeting:
“There are currently significant structural issues with the crypto markets that will prevent wide-spread commercial and institutional involvement.”
A recent Bloomberg article suggested that barely anybody is spending bitcoin and therefore the cryptocurrency’s use case as a currency is weak. The publication cited data from blockchain intelligence firm Chainalysis. Considering that most of bitcoin transactions are on exchanges, Chainalsyis suggests that speculation remains bitcoin’s chief use case.
| Source: Bloomberg/Chainalysis
Bitcoin Consolidation
Lingham isn’t the only market leader who expects consolidation in the bitcoin price ahead. CCN previously reported that bitcoin bull Michael Novogratz is too, though he’s provided a lower range than Lingham. Novogratz, who is the CEO of crypto merchant bank Galaxy Digital, expects that BTC “probably consolidates somewhere between $7,000 and $10,000.”
He would seemingly be happy to be proven wrong to the upside and could be given the momentum the bitcoin price has achieved with several tailwinds, not the least of which include Microsoft building on the Bitcoin blockchain and Mark Zuckerberg’s Facebook launching its own cryptocurrency, Globalcoin. Meanwhile, AT&T is also accepting BTC as a payment method, that is if “hodlers” want to part with their coins to pay their phone bill.
