CNBC Trader: Bitcoin (BTC) At $3,000 Would Cause Panic En-Masse
CNBC Trader Bearish On Bitcoin (BTC) ContrarianIndicator?
Anthony Grisanti, a CNBC guest and futures trader, recently sat down with the outlet’s “Futures Now” segment to talk about Bitcoin (BTC). While he claimed that he had no reservations against the cryptocurrency, Grisanti seemed overly bearish on BTC, even though fundamentals for the underlying blockchain are relatively outperforming.
Grisanti, the founder of GRZ Energy, noted that BTC, a supposed non-correlated asset, should have popped when U.S. equities, like a number of stockslisted on the Nasdaq, sold off. The fact that Bitcoin’s bear trend only saw a brief abatement (if at all) is a worrying sign in Grisanti’s eyes, so the trader noted that he expects for the low-$3,000 level to be tested.
In fact, the CNBC guest noted that as investors continue to liquidate their holdings, whether it be through the spot or futures market, BTC could fall to retest $3,000, with a break under this pertinent psychological, technical level catalyzing a further sell-off. He explained:
A move down to $3,000 would represent a real weakness in this space. This could be the driver that would get people to bail out of [Bitcoin], and push [the asset] even lower.
Another guest to the segment, Scott Nations, claimed that he “absolutely wants to be short here,” explaining that there’s no value in Bitcoin. He explained that millennials, which is the generation behind much of the cryptosphere, haven’t seen assets bubbles, adding that cryptocurrencies are inflated in value. Nations noted that the “glue is coming undone,” explaining that the bottom isn’t even in sight yet.
Funny enough, the seeming anti-Bitcoin comments sparked controversy in the crypto community, as users began to draw attention to the fact that CNBC’s reports are often a contrarianindicator to BTC’s movement. Per analysis completed byJacob Canfield in August, CNBC’s tweets on Bitcoin could be used as a contrarian price indicator with upwards of 95% accuracy.
Yet, it remains to be seen whether CNBC’s newfound bout of bearish sentiment will be a precursor to a move higher.
Crypto Commentators Expect Lower Lows, But Eventual Rebound
While a number of analysts and commentators are convinced BTC will fall below $3,000, unlike the CNBC trader, they believe the asset will return. And return with a vengeance at that. Per previous reports, Fred Wilson, a leading venture capitalist and co-founder of Union Square, which held shares in Twitter, Tumblr, and Kickstarter, claimed that a bottom for large, liquid, and lasting cryptocurrencies is festering.
Yet, he explained that before the bottoming process plays out, likely in late-2019, Bitcoin could easily re-test its yearly lows at $3,150, potentially breaking lower before a long-term floor is tapped. However, he explained that with the arrival of Ethereum Constantinople, promising projects like Filecoin and Algorand, and industry competition, this market will eventually enter a “new bullish phase.”
Moon Overlord, a respected crypto trader, recently echoed these comments. The Twitter commentator noted theres a fleeting chance that Bitcoin has another substantial draw-down ahead of itself, citing historical data from the previous bear season in 2015. As the harrowing, yet also optimistic adage goes, history does not repeat itself, but it rhymes. So, if historical trends prove to be an accurate indicator, the flagship cryptocurrency could fall to as low as $1,700 before another knock your socks off rally.
Another industry pundit, the so-called Dollar Vigilante claimed thathe expects that cryptocurrency prices have hit (or are nearing) the bottom by and large. Yet, in spite of his bottom call, he noted that Bitcoin could remain in a lull until 2019s end.
However, Berwick noted that with the arrival of institutional money (which he isnt necessarily a fan of), via platforms likeBakkt, apotential Bitcoin ETF, andNasdaqsproposed futures, will change the game completely. He noted that as soon as institutional capital starts flowing, this market will explode en-masse, as there are presumed trillions waiting on the sidelines.
Title Image Courtesy of Pedro Gabriel Miziara Via Unsplash
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