Bitcoin [BTC], the largest cryptocurrency in the world, had a massive price hike last week and was trading over $5,000, at press time. The surge contributed to many traders speculating whether the long bear run had indeed ended.
Vinny Lingham, the CEO and Founder of Civic, was one of the few skeptics of the bull run, claiming that there was a possibility that the bear run had not ended.
In a recent interview with CNBC Crypto Traders, Lingham was asked about the legitimacy of the recent price hike.
He stated that he did not believe in the recent bullish wave. According to Lingham, Bitcoin’s price would have to surpass the range between $5,700 and $,6200 and remain in the bracket for 24 to 48 hours, before the end of the crypto-winter can be confirmed.
“If you look at the bear market cycles and Bitcoin [BTC] typically, the bottom is dictated by a 2x rise. The bottom so far we saw is $3100, so around $6200 you can starting saying that it’s going into a bull market or atleast the bear market’s over. Until and unless, Bitcoin crosses $6200, you cannot indicate the end of the bear’s market.”
He further explained that the historical charts of bear market cycles indicated that the sentiment of bearish trend changed only after the price was 2x to the bottom. Once the valuation was 2x to the bottom, the market would usually shift to upward momentum, he added.
Additionally, Lingham claimed that there was a chance that Bitcoin [BTC] could go below the current bottom of $3,100, as the bear market was not necessarily over.
Lingham was also asked whether April Fools’ Day news articles contributed to the market’s bull run. He responded by saying that the cryptocurrency market was not dictated by news, and especially not during a bear cycle.
“In a bear market cycle, news doesn’t move the market much and that’s the reality. I think there was a mechanical change in the market; I think it was a decent amount of money coming in where the buying pressures overtook the selling pressure which pumped up the prices.”
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