MALTA BLOCKCHAIN WIRE
Crypto commentators weigh in as decision time draws near
Novogratz: "all markets like to retrace the breakout"
Oct 22, 2018
Following Bitcoin’s explosive breakout that sent it flying to $6,800, crypto enthusiasts are doing their utmost to figure out where this market will head next.
Over the course of the year, Bitcoin has been unable to convincingly dip below $6,000. In fact, some are claiming that the flagship digital currency is undergoing a “bottoming process”. That said, the recent discrepancy in a widely-used stablecoin has led to confusion in the market, with some even saying that the push to $7,700 was mostly due to a slide in Tether. Still, exchanges that do not trade in USDT also saw a pump – albeit less pronounced. All in all, it remains to be seen how the USD/USDT story will pan out, and traders are keeping a watchful eye on these developments.
“Last Dip Ever”
Well-known commentator and analyst AngeloBTC recently broke his month-long Twitter silence to claim that Bitcoin was in the midst of its “last dip ever,” alluding to the well-read hypothesis that digital assets are passing through a bottoming phase.
Some say this bullish call was fuelled more so by hope (or hopium) than technical and fundamental analysis. But needless to say, a prediction by a prominent trader with over 125,000 followers on Twitter is notable. Despite Angelo being BitMEX’s top trader in volume earlier this year, his prediction fell short on technical and fundamental indicators – hence the above scepticism.
Meanwhile, perma-bull and former Wall Street guru Mike Novogratz took his dusty Twitter account off the shelf in early-September to claim that this market “put in a low.” His knowledge of traditional markets undoubtedly played their part influencing his optimism. The Galaxy Digital asset management firm CEO explained that all markets “like to retrace to the breakout.” As such, seeing that crypto assets “retraced the whole of the bubble,” Novogratz believes that a reversal to the upside is imminent.
A week after he posted his “’calling a bottom” tweet, Novogratz took to CNBC’s Fast Money to highlight his perspective on the coin’s fundamental indicators. In the lengthy interview, Novogratz explained how institutions are poised to allocate capital to the crypto market, saying that “institutional FOMO” (fear of missing out) is just around the corner.
Novogratz has since retracted some of his short-term predictions though. But other high-profile individuals pick up where he left off. Tom Lee, long-time Bitcoin advocate who heads Fundstrat Global Advisors told his clients that $1,900 per Ether by the year’s end is a likely scenario. While he didn’t explicitly reiterate it this time, Lee has previously called Bitcoin’s price prediction at $25,000 by the year’s end.
Positive news cycle takes hold
Blockchain Capital’s Spencer Bogart recently also joined in on the bullish predictions, claiming that the long-awaited Bitcoin boom is within reach. Outlining his positive predictions, Bogart said the developments in the crypto market these last couple of months will be “kindling” for crypto’s next bonfire.
More recently, Tom Lee reiterated his opinions in an interview with crypto enthusiasts Heidi, where he drives his point home that “people are too bearish… What happens is people get bearish because it makes sense. You know the market conditions have been terrible and we are under our 200-day moving average.”
He added: “We [at Fund Strat] just published a report this week that pointed out to our clients that when Bitcoin is under its 200-day, it only goes up 50% of the time in the next six months. But when it’s above its 200-day, it is up 80% of the time [in the next six months], so the trend implied by the 200-day is obviously very important.”
Fundamentally, the industry has seen it’s fair share of positive news too. Bakkt, a crypto platform aimed at institutional retail investors and merchants is set to launch its first product in November. The launch of its physically-backed futures products is often touted as a bullish fundamental signal of institutional investment and accumulation, signalling a change in direction in the market.
Clearly, there is no shortage of price predictions, but whether Bitcoin will live up to these bullish expectations is another matter entirely.
BTC is exchanging hands at the $6,400 handle (Coinbase) at the time of writing.
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