This week bitcoin has taken a beating and although it has found a level in which to rest and console itself, the damage done will take a long time to undo. However, we (the crypto-community) remain optimistic, but, as the popular saying goes-We hope for the best but prepare for the worst.
So, What’s The Worst And What Must Be Done
This week has seen bitcoin lose little under $1,000 from its 2-month high of $8,500 and this isn’t nearly as bad as what would happen if it slipped below a certain key support level.
As we reported before, one key support level is $6,800 and this is the level at which the bullish market must protect with their lives. Because although bitcoin has lost a lot in the past week, going below that support level would announce to the world that bitcoin is dying.
Bart Smith, head of digital asset at Susquehanna International Group, A.K.A Wall Street’s crypto king speaking to CNBC’s Fast Money, said;
“The technicians I have talked to are concerned about $6,800. That’s the level where I think, if it breaks through, it would be negative”
Bitcoin had previously struggled to break the $6,800 resistance level, but, when it finally did -a few weeks ago- it did so in strides, shooting up by about $600. Since then, the digital asset has been largely soaring.
However, this week has not been all sunshine and rainbows for the market. In midst of the drop, Bart says that bitcoin is showing resistance that proves there are better days to come, something we can all look forward to.
Institutions ‘Dancing’ With Cryptocurrencies Could Be The Catalyst Needed, Says Crypto King
Bart Smith went on in the interview to explain that if in the course of the next three months a ‘big brand name’ institution was to make an announcement that it was putting money into the market, this could send prices soaring.
When big institutions get into the game, more people will be attracted to the market and this could be the catalyst the market needs to break out. He also added that the market needs smart regulations rather than more regulations.
The crypto king was also keen to point out that cryptocurrencies were designed to revolutionize the financial system and we expect it to last forever. For this reason, the world needs to be patient with its adoption and indeed its volatility.
“Everyone wants it fast and now in the society will live in now… but this is a long game, and I think that a lot of things are happening out there where people see the opportunity and we’re going to continue too see institutional adoption and the plumbing get built so that can happen.”