Some analysts warn that Elon Musk’s unpredictable tweets will keep traditional investors on the sidelines.
A number of Wall Street charting experts say that bitcoin’s slide, which has been in for weeks, is set to intensify.
Evercore ISI’s Rich Ross sees prices set to fall to the 200-day moving average, trailing other speculative assets, putting bitcoin back at $ 40,000, compared to just under $ 44,000 today. .
Others are watching for a pattern of “lower highs and lows” and say Elon Musk’s unpredictable tweets will keep traditional investors on the sidelines. There is also speculation that gold is starting to extract money from cryptocurrencies.
“Momentum has now shifted quite decisively to the bears,” said Tallbacken Capital Advisors LLC CEO Michael Purves, who correctly predicted last month that bitcoin would go down.
Bitcoin is still racking up more than 300% since last May, but the speed of the recent drop has shaken new crypto believers and cast doubt on the idea that it is maturing to become just another asset class. stable. Prices have fallen about 30% from intraday highs in April, when prices topped $ 64,000.
Purves says the next important level for bitcoin is $ 42,000, because it roughly equates to the peak of the January rally and a 50% decline from December 2020 levels. If bitcoin breaks that level, there will be further losses. But if prices can stay above support, then it could be the start of a new rally, Purves predicted.
“A setback could be seen coming. This is healthy, but I think we all wish this didn’t happen, ”said Justin Chuh, a senior trader at Wave Financial, which invests in crypto assets.
The counterpoint comes from Fundstrat Global Advisors. In a Monday note, strategist David Grider laid out nine reasons why he believes prices are set to bounce, including high short interest levels and the fact that corrections like this tend to be normal in a bull market of cirptocurrencies.
“We don’t know the future, but we think the odds are that we are close to bottom and we don’t want investors to panic here,” Grider wrote.
Anchorage Digital Bank, which operates a digital asset platform for institutional investors, said it is seeing clients maintain or increase their cryptocurrency holdings.
“They’re looking at this as a good entry point,” said Diogo Monica, president and co-founder of the California-based bank.
Follow the news of El Espectador on Google NewsOther charting experts are turning to exchange-traded funds, or ETFs, as an indicator of where the cryptocurrency market is headed.
SentimenTrader’s Dean Christians is monitoring a blockchain-centric fund called the Amplify Transformational Data Sharing ETF: “I’d watch the pivot break point at $ 48.75. If you can’t recover above that level, take note, ”he wrote in a note Monday.
