With Bitcoin currently on the slide, losing $14 billion off the total cryptocurrency market cap, a cryptocurrency trader at the New York Mercantile Exchange (NYMEX) said that Bitcoin will likely move back to $7,000 and consolidate soon.
Anthony Grisanti of NYMEX has predicted that Bitcoin’s price will soon be heading back towards the $7,000 range after spiking towards $8,300 in the past week or so.
“I think it consolidate a little bit … I think consolidation for this market is very healthy,” he stated.
A fall in volume
One of the bigger indicators for price direction and the health of the market often has to do with the volume of the cryptocurrency. In the past few days, there has been a notable drop off which indicates that buyers are not returning to the market with the same strength they were a few weeks prior.
This has now triggered the latest fall in price, as Bitcoin sits at around $7,580 at time of publishing, sending most of the rest of the cryptocurrency markets into the red. There may well still be some resistance for the major cryptocurrency before reaching $7,000, but that does seem to be an agreed upon level for the consolidation.
Long terms positive predictions
This consolidation, as stated by Grisanti, is a healthy thing as Bitcoin looks to be growing at a slower, and more sustainable rate compared with its 2017 rally. The small ebbs and flows upward, with manageable corrections, should set the coin up for good growth in the long run.
Another key factor to consider, as was done by CNBC’s Brian Kelly, is that an upcoming supply cut — or the “halvening,” next due to take place in 2020 — could help bitcoin prices rise further in the coming months.
The so-called Bitcoin winter is officially being called over, and many who thought that the cryptocurrency would not be able to bounce back after going parabolic and bursting at the top are rethinking their arguments.
There has certainly been an increase in volatility, but it has been both up and down, and on average the movement has been predominantly in an upwards direction. Thus, predictions of consolidation towards $7,000 are positive sings that the coin is growing, and will grow with substance in the coming months, and years.