Seems like that anticipated trip to the Lambo dealership will have to be put off for later.
According to the co-founder and CEO of Bitcoin Mercantile Exchange, Authur Hayes, the rally that bitcoin has experienced this week was accompanied by healthy volumes, making it possible for higher levels to be reached. However, prices could reverse and test the US$5,000 level again.
“I don’t actually think we’ve seen the worst. I think this is a very strong rally on good volume and we definitely could see $8,000 … $9,000 … and maybe just shy of $10,000 … we’ve been here before where we rallied from $5,800 to a high of $9,000 level but didn’t quite crack $10,000. I think similar action will happen this time and I would like to see us test $5,000 to really see if we put a bottom in,” Hayes told CNBC’s Fast Money.
Strong Support to Offer Launching Pad
In his view, Hayes expects that after finding a strong support level, the flagship cryptocurrency could then rally to $50,000 by the end of the year. Hayes also disclosed that he expects more volatility after the end of summer.
“Given that it’s a summer and everyone is in the Hamptons, or the French Riviera or in Asia at Bali, I think people are taking a little bit of a chill time… come back in Q3, Q4 is when I think the party is going to start again,” Hayes said.
The remarks by Hayes are in contrast to some of the bullish sentiment floating around indicating that bitcoin had bottomed out. On Tuesday, for instance, Digital Currency Group’s founder, Barry Silbert, stated that bitcoin bears had run out of steam.
FUD not Working Anymore?
According to Silbert, one of the reasons that was giving him confidence was the fact that Jerome Powell, the chairman of the U.S. Federal Reserve, had criticized cryptocurrencies but this did not place downward pressure on prices.
“When the chair of the Fed says negative things about bitcoin, and Howard Marks [Oaktree Capital’s co-chairman] says negative things about bitcoin, and Ken Griffin [Citadel’s founder and CEO] says negative things about bitcoin, and bitcoin doesn’t move, I think that’s a bullish sign,” Silbert said.
The Charts are Calling the Shots
Others who have expressed bullish sentiment include the managing director of Forex Strategy at BK Asset Management, Boris Schlossberg, who predicted that the bitcoin price could break above $8,000 soon. Schlossberg pointed out that at this point technical analysis was driving the price of bitcoin rather than the fundamentals.
Avenue Capital Group’s co-founder, Marc Lasry, also predicted an upward movement for bitcoin and expects the flagship cryptocurrency to hit the $40,000 mark in the next couple of years.
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