Bitcoin just can’t break free from its $6,000 level.
Another pullback on Tuesday dragged it back down near the lows of the year and spooked crypto investors already fearful of a pervasive sell-off.
One bitcoin bear is holding out for change in the cryptocurrency market.
“After the move we’ve seen it’s very difficult in the short term to be bullish,” Todd Colvin, analyst at Ambrosino Brothers, told CNBC’s “Futures Now” on Tuesday.
There is one thing that could turn Colvin from bearish to bullish: clarity. To rally, bitcoin needs to see clarity on factors such as security, regulation and accessibility.
More transparent and improved security, for example, could entice a risk-averse crowd, says Colvin.
Hacks and security breaches are “the things that cause these bear markets, when you have these, ‘Oops, somebody robbed my wallet off an exchange.’ That caused the last big $1,000 decline we had,” he explained.
Two South Korean crypto exchanges, Coinrail and Bithumb, reported hacks in June. Those breaches contributed to a shift in sentiment that sent bitcoin prices from close to $7,000 to below $6,000 in late June.