Bitcoin has displayed some bullish signs today, pushing higher following its recent retracement.
The world’s largest digital currency by market value reached $7,868.49 around 1:00 p.m. EDT, up roughly 5.2% from its intra-day low of $7,478.10, CoinDesk price data reveals.
The cryptocurrency dropped below $7,500 after falling back from its recent high of $8,360.19 on May 15, additional CoinDesk figures show.
The digital currency experienced this pullback after climbing more than 100% since the start of the year.
[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.]
When describing bitcoin’s latest recovery, Joe DiPasquale, CEO of cryptocurrency fund of hedge funds BitBull Capital, struck an optimistic note.
“Bitcoin had been going up relentlessly for the most part of this month and some profit-taking and a consequent pullback was to be expected,” he stated.
“However, the bounce back has come rather quickly (in about 6 hours) which is a great sign, indicating consolidation in the $7,500 – $7,900 range, which can easily result in another attempt at crossing $8,000 conclusively in the coming days.”
‘People Are Starting To Trust Crypto Again’
Derek Sorensen, research mathematician for cryptocurrency firm Pyrofex, offered a similarly bullish perspective.
“There’s no question that Bitcoin is on its way back up,” he stated.
“People are starting to trust crypto again after the bubble burst at the end of 2017.”
John Todaro, director of digital currency research for TradeBlock, offered a more reserved point of view.
“This pull-back in bitcoin prices is welcomed as the space was starting to get over-heated the last month,” he stated.
However, Todaro added that “I am skeptical of this recent push higher, after the pullback, as ideally would like to see bitcoin trade sideways and allow for institutional traders to build confidence in the asset class and begin an accumulation phase.”
“If there is too much volatility, this could concern investors and leave them sidelined, slowing adoption and institutional interest in the longer run,” he noted.