David Hunter, Chief Strategist at Contrarian Macro Advisors, identified for his evaluation of worldwide markets, made placing statements of nice curiosity to Bitcoin and cryptocurrency traders.
Responding to Natalie Brunell’s questions, Hunter indicated that technically downward strain on Bitcoin might proceed, pointing to a pointy correction wave.
David Hunter, recalling that he shared a technical chart evaluation when the Bitcoin value was above $100,000, mentioned that the downtrend might deepen. Stating that technical momentum, somewhat than basic components, determines choices out there, the famend analyst summarized his short- and medium-term targets for Bitcoin with the next phrases:
“When Bitcoin was above $100,000, I made a technical evaluation and mentioned the value might initially drop to $75,000. Now I predict the following step could possibly be $50,000.”
Hunter acknowledged that the most important psychological issue behind the declines was retail traders who entered the market at excessive costs (between $100,000 and $120,000) with the “need to catch the height.” He famous that these traders are actually at a loss and have began promoting in a panic.
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The macro analyst acknowledged that damaging momentum in bear markets is self-reinforcing, however identified that the true huge danger lies in company debt and leverage utilization.
“Similar to within the silver market, momentum begets momentum in Bitcoin. Those that joined the upward rally on the final minute are actually at a loss and giving up. However the true hazard is that gamers like Michael Saylor, who held positions with excessive leverage, might be cornered by this damaging strain.”
Hunter argues that the Fed should print a large amount of cash, maybe $20 trillion, to rescue markets sooner or later, and predicts that one of many largest world collapses in historical past will happen simply earlier than this course of.
Whereas Bitcoin supporters see it because the “final monetary protected haven,” Hunter, sustaining a cautious stance, mentioned that whether or not Bitcoin is an actual asset can solely be confirmed by this main disaster.
“I’ve all the time mentioned to individuals within the Bitcoin world: I wish to see how Bitcoin will fare throughout this world downturn. After watching how BTC survives throughout this main disaster, we’ll have the ability to definitively perceive whether or not it’s a ‘actual and resilient’ asset as everybody claims.”
*This isn’t funding recommendation.
