- The head of Digital Currency Group is optimistic about the long-term Bitcoin performance.
- A sustainable move above $8,200 is needed for an extended recovery.
The head of Digital Currency Group Barry Silbert believes that the crypto winter is over. Speaking n the interview with Bloomberg Technology, he explained that the cryptocurrency market tends t move in cycles, while the recent growth of prices signals that the downtrend is over.
The expert compared Bitcoin price movements with a roller-coaster. He pointed out that the first digital currency lost over 80% of its value four times and each time it recovered and hit a new maximum.
Also, Silbert noted that institutional investors had been actively engaged in the cryptocurrency industry for some time now. Regulated custodial solutions allowed them to get exposure to the new type of asset.
At the time of writing, BTC/USD is changing hands at $8,120. The coin managed to clear $8,000 and $8,100 barriers, though the further upside may be limited by $8,200. This resistance is created by a confluence of the middle line of 1-day Bollinger Band and 23/6% Fibo retracement daily. Once it is cleared, the recovery is likely to gain traction with the next focus on $8,500 and $8,900 (an upper line of weekly and daily Bollinger Bands
On the downside, a sustainable move back below $8,00 handle will trigger strong sell-off and open up the way towards $7,450 (the lower boundary of 1-day Bollinger Band) followed by $7,230 (SMA50 – Simple Moving Average – on a daily chart).