According to Vinny Lingham, the CEO of Civic, the crypto market and Bitcoin could suffer from their bearish trend for at least three to six months. The $3,000 support level has been quite strong Lingham said and in the short-term, the $3,000 support level will…
According to Vinny Lingham, the CEO of Civic, the crypto market and Bitcoin could suffer from their bearish trend for at least three to six months.
The $3,000 support level has been quite strong Lingham said and in the short-term, the $3,000 support level will likely be maintained with buy orders being set in the lower range of $3,000 to $3,500.
“I think it stays in the range between $3,000 to $5,000 at least for three to six months. I don’t think we break through the support level of $3,000 just yet. I think there is a lot of buying in the short-term around that mark. If we don’t get out of the crypto bear market cycle in the next three or six months, the $3,000 level could go.”
Several prominent analysts including Woobull.com founder Willy Woo have said that the bear market of the cryptocurrency market could come to an end by the second quarter of 2018, but there exists a very low probability of the downtrend being reversed in the short-term.
Following a correction in the magnitude of 80 to 90 percent, an asset normally tends to endure a long consolidation period. For a rapidly moving asset class like crypto, the consolidation period could last three to six months.
But, Lingham said that if the cryptocurrency market fails to recover in the next two quarters, the $3,000 support level could be breached and the downtrend could extend to the end of next year.
Over the past several months, in spite of the volatility in the cryptocurrency market, the industry has seen the entrance of Bakkt, ICE, Nasdaq, Fidelity, and many more financial institutions in Asia.
Today, on November 27, sources reported that Nasdaq is planning to operate a Bitcoin futures market by the first quarter of 2019.
Lingham noted that if the volatility of the cryptocurrency market continues to increase, then institutional investors could refrain from investing in the asset class even if the infrastructure strengthens and solidifies.
“[Extreme volatility] doesn’t make crypto an investment-grade asset. If you keep speaking about institutional investors coming to the table and ETF getting approved, you can’t have this sort of volatility in an asset class if you want big money to be involved,” he added.
The recent crash of Bitcoin in the past two weeks by more than 35 percent has scared away retail and institutional investors, Lingham explained. Because of the downtrend, he emphasized that the asset is too risky to invest in.
“I think in the short-term, it is a market where you scare away the retail investors, you scare away the institutional money and the die hards are hodlers, and will come in whatever dry part they have left. For me, it’s a bit too risky. But obviously, it’s high-risk, high-reward, if the market does turn, this could be a great time to buy.”
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Last modified: January 24, 2020 10:54 PM UTC