Bitcoin prices experienced some notable losses earlier this week, dropping more than 15% in less than 48 hours.
Following these declines, the digital currency has been trading within a reasonably tight range between $6,300 and $6,600, according to the CoinDesk Bitcoin Price Index (BPI).
At this point, are bitcoin prices treading water, simply waiting for the next impetus to push them higher or lower?
According to some analysts, the answer is yes.
[Ed note: Investing in cryptocoins or tokens is highly speculative and the market is largely unregulated. Anyone considering it should be prepared to lose their entire investment.]
“It’s waiting for the next catalyst,” said Charles Hayter, cofounder and CEO of digital currency data platform CryptoCompare.
Marouane Garcon, managing director of crypto-to-crypto derivatives platform Amulet, offered a similar point of view.
Bitcoin prices are “absolutely” waiting for the next key impetus, he claimed.
“The market doesn’t believe Bitcoin is worth $8,000 or $10,000,” emphasized Garcon.
People are “waiting for a mass adoption play,” he stated, emphasizing that “making Bitcoin accessible to more people is the name of the game.”
While Hayter and Garcon spoke to major news events, analyst Jon Pearlstone focused on charting, offering some technical analysis.
“BTC continues to trade in a range between key support and resistance of $6000-$7250,” said Pearlstone, publisher of the newsletter CryptoPatterns.
“However, we don’t see that lasting much longer,” he stated. Pearlstone elaborated:
“The bulls last stand is strong support at $6000 that’s hodling for now, and we’ve seen some bullish signs from the altcoin market, but BTC needs a catalyst that motivates buyers to break above convincingly above the $7250 level soon, which should bring a test of $8000, or the bearish trend is likely to continue with a test of $5000.”
While several market observers described bitcoin prices as waiting for the key news event, expert Mati Greenspan took a different tack.
“Bitcoin isn’t treading water, it’s swimming,” stated Greenspan, senior market analyst for social trading platform eToro.
“The price is up more than 600% in the last two years. I’d say that’s pretty fantastic.”
Disclosure: I own some bitcoin, bitcoin cash and ether.