- Insider spoke to two cryptocurrency professionals on why they're still bullish towards bitcoin.
- Bitcoin plunged 35% in a matter of days, then saw renewed selling pressure after China reiterated its bitcoin-mining clampdown.
- The bitcoin bulls said the cryptocurrency will see range-bound trading in the short term.
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After taking a one-day breather following a week-long plunge that saw it lose more than 35%, bitcoin resume its sell-off on Friday after China reiterated its crackdown on bitcoin mining and trading.
Despite the quick succession of blows, two crypto professionals argue that the worst is over for bitcoin for now, despite renewed selling pressure.
"We believe that most of the leverage is out of the system now and bitcoin should start to form a base here," Pankaj Balani, CEO at Delta Exchange, a crypto derivatives exchange, told Insider.
Balani did acknowledge that bitcoin's recent travails have eroded investor confidence, meaning it will take time for the cryptocurrency to gain sustained upward momentum.
He also added that bitcoin's price action until the end of May will be critical, although he does think the asset's price has already bottomed out. Balani did note the $36,000 level as a support threshold, adding that a conclusive breach would signal a longer-term pullback.
To David Jones - chief market strategist at Capital.com, a crypto trading platform - corrections like this are normal. He cites bitcoin's cult-like following as a reason why the cryptocurrency won't stay downtrodden for long.
"So has the bitcoin bubble burst?" he said. "Don't bet on it. Its devoted band of followers means that the crypto-grandaddy has a phoenix-like superpower to rise again."
Further, in a video published on May 19, billionaire Mike Novogratz said bitcoin will consolidate for weeks, if not a couple of months - although he didn't give a price range.
"We're not going to put Humpty Dumpty back together again in a week," said Novogratz. "But I want to stress loud and clear that the underlying progress that's happening in both the bitcoin ecosystem ... is full speed ahead."