Experts believe Bitcoin could be permanently impaired: CNBC report
The recent crypto market crash seems to have charmed the investors. The market is experiencing an increasing buyer pressure with Bitcoin recovering by 3% and altcoins following closely behind. Most coins are eyeing to break out from the resistance levels to resume trading in the bullish trendline. The postponing of Bitcoin ETF approval which supposedly caused the overall crypto market to crash has simmered down and has ensued a new wave of buyers cashing in on the bearish market.
BTC price today found support at $6236.7 and is rising. It is currently trading at $6464.9 and is gaining against USD by 2.93%. Prices are trying to fight off the bearish market and move over to trading in a bullish zone. Earlier this month Bart Smith, Wallstreet’s crypto king said a negative breakout can happen only if the price reaches $6800 level. The coin is trading much further below the level which might mean the market recovery might be slow.
Jeff DeGraff of Renaissance market Research brings more bad news to Bitcoin enthusiasts. He advises against investing in Bitcoin if the coin broke out from this year’s support level. “Parabolic moves are notoriously dangerous for short‐sellers … Usually, a top develops that often appears as a descending triangle over months, with reduced volatility and little [fanfare]. Once the top is complete on the support violation, the security in question can often be considered permanently impaired or even ‘game‐over’. We are of course referencing Bitcoin as exhibit ‘A’ in today’s market,” DeGraff said in a note to clients obtained by CNBC.
Mike McGlone seconded DeGraff saying that Bitcoin will fall even further. The Bloomberg Intelligence analyst said, “Bitcoin is in dump mode, following the pump run-up on the potential for a U.S. ETF. It may not subside until revisiting good support near $4,000 — last year’s mean.” He indicated that this year’s price correction was “tame” compared to the previous years.
Rob Sluymer, a technical strategist at FundStrat Global Advisors in New York, is pessimistic about Bitcoin adding to the line of technical analysts doubting a Bitcoin recovery. During an interview with Bloomberg, he said, “You’re getting a bounce today, but I expect the next level of support down close to $6,100. It’s pretty early to make the case that you need to go long. It’s got to stabilize first.”
Other Related Articles
- With Bitcoin, Bitcoin Cash also a payment option for this Fortune 250 company
- Thailand police detain actor in $24 million Bitcoin scam case
Image via Shutterstock
Join our telegram group