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Bitcoin’s breakout could be short-lived, strategist says.
The cryptocurrency gained nearly 2% on Tuesday, helped in part by PayPal’s rollout of crypto-enabled online payment services to millions of its global partners.
“I think most of these things are very smart right now,” Boris Schlossberg, managing director of currency strategy at BK Asset Management, said Tuesday on CNBC’s “Trading Nation”.
Bitcoin’s high degree of volatility likely means transactions on platforms like PayPal will be “infinitely small compared to regular currency,” Schlossberg said, noting that he still believed in Bitcoin as a better store of value. than gold.
Even so, “the whole rally in crypto is getting very long,” he warned.
The Chicago Mercantile Exchange on Tuesday announced plans to launch micro bitcoin futures in May worth one tenth of a bitcoin.
Such a move could drive the price of bitcoin down whether investors like it or not, Schlossberg said, noting that it surpassed the last time the CME launched bitcoin futures in late 2017.
“I think we’re very, very close to maybe a mid-term peak here,” the strategist said. “A small correction is definitely due at this point.”
The level to watch on the downside is $ 52,000, said Matt Maley, chief market strategist at Miller Tabak, in the same “Trading Nation” interview.
“If it drops below that level, that will be a big warning flag,” giving bitcoin its first low of the year after a series of higher highs and lows in the past six to eight months , did he declare.
“However, right now, with this series of higher ups and downs, I think the [path] lower resistance is higher, “Maley said.” So if she breaks her recent highs of 61,000, she should see another higher leg. Having said that, I agree with Boris. In a very volatile situation, he’s going to see much bigger declines along the way. It can change the world, but Amazon has changed the world. He also underwent many deep fixes. “
Bitcoin was trading above $ 57,700 on Wednesday.
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