For the first time in some days, Bitcoin is wobbling back downward from a long-term high of around $9400 to rest just over $9000 early this morning as the bell for the U.S. market approaches.
It’s been a somewhat rapid rise up to this high water mark that’s not been seen since the glory days of last summer, but eToro’s Mati Greenspan, a much renowned analyst with an eye toward the crypto field, sees it as overall a smooth transition.
“There’s more computing power being generated – than ever before,” Greenspan told Cointelegraph’s Molly Jane Zuckerman in an interview this morning. “That tells us that the Bitcoin miners themselves – are extremely bullish right now.”
Greenspan said he likes to see the “smooth inclines” that represent steady gains, rather than wild swings up and down – and admitted that Bitcoin is often volatile.
In general, he pointed to potential for greater increases with a miniature resistance around $10,000.
Fundamentals, he said, are solid.
“Activity on the blockchain is growing at a rapid pace,” Greenspan said, calling the recent correction to $9000 “incidental.”
Another marker that Greenspan noted is the proliferation of related addresses, which recently hit the 1 million mark. Conceding that different sources have different criteria, he nonetheless hailed this benchmark as another sign of future potential.
The market, he said, also likes round numbers.
“$10,000 is a super-round number,” Greenspan said in analysis of investor sentiment as BTC floats on the 9K number.
As for the inverse relationship of the Bitcoin values to the Chinese currency, Greenspan cautioned investors not to read too much into the correlation.
Citing political protests in Hong Kong, Greenspan noted that although there are resistance levels on either side, there’s indications that point toward the likelihood of more gains for Bitcoin in the days and weeks to come.
Also, he said, the industry might benefit eventually from some of the cautionary actions by big exchanges. Binance and Kraken are two that have limited their exposure to an American client base on actions by regulators – in the case of Kraken, New York officials in particular.
Despite all of this, Greenspan makes a good case for being confident on BTC. That doesn’t mean that traders can expect the coin value to just go up and up, rather, as in the reported analysis of figures like Michael Novogratz, it suggests that having BTC in the $8,000-$10,000 range is in the end appropriate valuation.