Bitcoin is yet to see its floor, says Bloomberg analyst. Brian Kelly thinks the bottom is at $2900
Bitcoin is still mired below $4k but it is slowly climbing up towards that psychologically important level. Has BTC already bottomed out?
The stock market is down again to start the last trading week before Christmas. The Dow and S&P 500 both dropped by 2.1% today, while the NASDAQ sank 2.3%. The major driving forces of this market decline are slowing growth projections, an escalating trade war between the United States and China, as well as rising interest rates.
On the other side, Bitcoin is up 11% and Ethereum is up 14% so far today on the strongest rally the sector has seen in months.
While it is still early to call an absolute bottom in the cryptocurrency market, moves like this are certainly encouraging. The possibility of exponential gains whenever the crypto bull finally awakens and resumes its bull trend is extremely high.
There has been a slew of bullish news for the crypto space over the past several months, but a major news or catalyst for the epic bull run is still lacking so this mini upward movement could simply be a few whales (large investors) playing with the market, entering and creating significant demand for bitcoin and, by extension, the whole market.
Non-correlated moves bitcoin is making in comparison to the traditional financial sector could be very appealing to investors who are looking for a place to move their capital.
Kelly sees bottom at $2900
Bullish finance boss Brian Kelly said pricing suggests the cryptocurrency is “getting closer to the bottom” of around $2,900 – indicating there could soon be an upward trend. Mr Kelly, founder of Brian Kelly Capital, told CNBC: “For me, the bull case and the investment case is that everything that you can say is wrong with bitcoin is going to get fixed.
“Similar to with the internet when it was super slow and yet and you had dial-up internet and people didn’t want to shop online and all of those things.
“As the technology progressed, it got better and it got a higher adoption rate.”
Oversold market
“The market is extremely oversold by most metrics — near the most oversold in Bitcoin’s history,” said Mike McGlone, a Bloomberg Intelligence analyst in New York. McGlone pointed to the token’s relative-strength index this week and its “extreme discount” to most moving averages. Even so, he predicts Bitcoin will form a new floor next year that’s lower than current prices. – Source
