Will Bitcoin Recover from $7k Range?

Once again, Bitcoin took a fall below the $8k key resistance level. After months of being able to stay near $9k/$10k ranges, it finally fell under the pressure and for a short time fell into the $7k mark. 

So what does thing mean for the ecosystem? Well, David Nage - principal at the Los Angeles-based money firm Arca Funds, has given his thoughts on this week’s drop in value for bitcoin and whether the volatility in digital assets might turn off big investors.

Nage saw Bitcoin’s price to be artificially range-bound until correction, stated:

“With bitcoin, where there’s potentially a drop, obviously you can see it as a potential to buy.”

The Principal believes that bitcoin, as a digital asset, is akin to future-pointing equities such as Amazon or Netflix. He said:

“If supply continues to get cut in half and the demand continues to rise, classical economics shows the price increases.”

And so when the next halving is predicted to be quite bullish for the space, both technically and fundamental viewpoints. Either way, we have uncertain times ahead for BTC’s direction after its recent sell-off threw into question the long-term trend.

Before we go any further though, it’s worth saying that we aren’t financial investors and this isn’t financial advice. Please do your own research before putting your money in a cryptocurrency and always remember to trade safe!

Soravis Srinawakoon, co-founder and CEO of decentralized data governance project Band Protocol, said:

“Looking at the technical chart of Bitcoin, we’ve been seeing a squeeze in a descending triangle of the bitcoin price in the past few days. Combined with the recent disappointing launch of Bakkt, it is clear there is an overall negative macro sentiment in the market.”

It will be interesting to see how this situation plays out. For more news on this and other crypto updates, keep it with CryptoDaily!