Bitcoin (BTC) had a torrid time in 2018, which saw the flagship cryptocurrency slump to £2,889 ($3,687) by the end of the year. But the token has experienced a promising beginning to 2019, with a bounce back above $4,000, following a spike in trading volume. Yet despite these bullish signs, things are about to get worse before for they improve for bitcoin and its fellow cryptocurrencies.
Vinny Lingham, CEO of blockchain startup Civic, believes bitcoin’s bleak outlook is due to many people’s enduring skepticism about cryptocurrencies.
Mr Lingham explained this lack of conviction relates to the cryptocurrency’s “adoption cycle curve,” due to BTC’s negligible real-world adoption, as digital assets are mainly used as a speculative medium.
The cryptocurrency industry can only begin to claw back its kudos by proving itself through the creation of physical products and services with real-world value.
And the market will only climb organically through the adoption of these catalysts.
Bitcoin price news: Things are about to get worse before for they improve for bitcoin
Bitcoin price news: Could BTC’s bleak outlook be due to skepticism about cryptocurrencies
However, many of these proposed blockchain projects have unrealistic and unattainable development rates, the Civic CEO believes.
Mr Lingham described many of these projects as “pipe dream,” adding only three to five percent of current tokens will pull-through the current “crypto winter.”
He also claimed the ongoing bear market is yet to hit a rock bottom, stating “there more pain to come,” and “things get worse before they get better.”
The Civic CEO believes the bitcoin price is likely to fall below $3,000 (£2,352), citing a intuition curated from years of experience in industry.
Mr Lingham also noted that if the asset doesn’t break out of this $3,000-$4,000 range in the coming months, bitcoin will “dip” and “it will go on forever.”
The comments come only weeks after his explosive claims that bitcoin will continue in a bearish state for six more months.
The Civic chief then outlined how bitcoin will realistically remain range-bound between $3,000 and $5,000 “for a while.”
Trading within the aforementioned $2,000-wide range is likely to continue for a minimum of three to six months, a common timeline in the eyes of BTC’s short-term supporters.
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In spite of Lingham’s bearish comments, other industry analysts painted more optimistic pictures for the cryptocurrency’s future.
Cryptocurrency commentator Charles Bovaird has claimed market sentiment is heading higher.
And he is far from alone in this bullish belief: Joshua Frank, crypto analytics provider TheTIE co-founder, has described how bitcoin’s “daily sentiment score” has been in the positive for all of 2019 so far, indicating that BTC could post “further gains.”
And according to technical data from CryptoPatterns’ Jon Pearlstone, Bitcoin is “showing multiple bullish signs” that may allow the asset to reach $4,500 in the near future.
And there are a number of cryptocurrency technicals that are looking more bullish than bearish.
But even still, the optimists were met with their fair share of rebuttals and opposite opinions.
However, bitcoin’s recently push past $4,000 has not put it past “titanium level thickness cluster of resistance.”