By CCN Markets: The bitcoin price might have broken back above the $10,000 level today, but one notable trader isn’t impressed. Speaking on CNBC, crypto investor Brian Kelly, who is usually the biggest bitcoin bull in the room, made it clear that he has turned…
By CCN Markets: The bitcoin price might have broken back above the $10,000 level today, but one notable trader isn’t impressed. Speaking on CNBC, crypto investor Brian Kelly, who is usually the biggest bitcoin bull in the room, made it clear that he has turned bearish on BTC/USD despite its recent bounce. Longer-term, however, Kelly still believes there is a “generational buying opportunity” coming in bitcoin. But he doesn’t see it just yet.
Brian Kelly is famous for his bold predictions on CNBC and most recently made several claims that the bitcoin price was likely to move higher than $20,000. With a focus on cycles and network activity, there has been plenty for the crypto investor to be excited about in the last few months.
Even evangelists like Kelly have to admit that BTC/USD has struggled immensely since hitting its yearly peak close to $13,000. While the initial drop was likely due to overbought technical conditions, brighter risk appetite appeared to remove the perceived “safe haven” driver behind its recent rally.
One of the fundamental arguments behind the positive long-term forecasts of many bitcoin bulls (including Brian Kelly usually) is the trend of increasing adoption. Crypto investment firm Grayscale noted in a recent tweet that there are now more than 100,00 merchants that accept BTC and 7.1 million users worldwide.
As adoption increases, supply limitations are a prominent bullish factor for the bitcoin price. The upcoming halving in 2020 is a hotly anticipated event and has the potential to be very beneficial to the price if many analyst claims are to be believed. Factor in Brian Kelly’s comments about miners hoarding BTC and the potential for a supply shock is evident.
Looking at the technical chart, BTC/USD may be finding some support from investors buying the dip below the psychological level at $10,000. In the medium term, the $9,000 price may be the most critical support, beneath which the bullish trend will be called sharply into question.
Last modified: January 10, 2020 2:59 PM UTC