Related Reading: Dr. Doom Claims Central Bank Digital Currencies Could Destroy Crypto
Despite these harrowing comments from “Dr. Doom” — as the economist, a long-time crypto hater, is lovingly known — investors seem to be as bullish as ever on Bitcoin and its ilk.
Speaking to Bloomberg on Tuesday, Mike Novogratz, the chief executive of crypto merchant bank Galaxy Digital, doubled-down on his buoyant commentatory on this budding market. In the interview, the Wall Street investor claimed that in the coming years, he expects for Bitcoin to skyrocket higher — even moon. But what exactly is his thesis?
Don’t Worry About The Bitcoin Price Fall
Reassuring investors right off the bat, Novogratz , also known as “Novo”, noted that he believes that the drawdown from $13,800 has paused for the time being.
In fact, he explains that more likely than not, Bitcoin is poised to consolidate from here, implying a trading range of $10,000 to $14,000 — the psychological price point and key technical level (0.618 Fibonacci Retracement/2018 resistance), respectively.
A brief aside, Novogratz announced last week the Galaxy sold a portion of its BTC holdings in the $13,000 range because it felt as though the market was getting overextended and frothy. He stated on that matter:
“I did say [before that] we had gone parabolic, there was too much energy in the markets, and we were going to consolidate… I trade a portion of corporate coin position all the time.”
Related Reading: Analyst: Tether Print Hints Strong Bitcoin (BTC) Recovery Back After $4,000 Fall
Indeed, there are an array of indicators and analysts claiming that BTC finding some stability around current levels is likely, especially considering that the asset seemingly put in a local bottom at $9,700, the 200-day exponential moving average (EMA).
As analyst Teddy Cleps points out, last time BTC hit its 200-day EMA, it made contact with this key trend line multiple times to confirm support, then rallied after double or triple bottoming. Bitcoin does this to allow for moving averages to coalesce, and the Moving Average Convergence Divergence (MACD) to flatten out for the next move.
#bitcoin – $BTC
Historically price rarely bounced immediately upon first contact with 200ema