Analyst Who Called Bitcoin’s 2019 Price Action Warns of Potential Pullback to $6,000
Joel Kruger, currency strategist at LMAX Group, in December 2018 remarked that he expects for Bitcoin to end 2019 between $5,000 and $8,000. And that it did, with the cryptocurrency ending the year right around the upper-middle of that range in the low-$7,000s.
Bitcoin Could Fall All the Way to $6,000 Before Catching Bid
Kruger explained that there’s a good chance Bitcoin could retrace towards $6,000 in the coming weeks and months, citing his sentiment that the cryptocurrency may be an asset that performs poorly in a risk-off environment because of its nascency and its relation to technology:
“There is a lot of support towards the $6,000 area and it is very possible that we could see a pullback down to that level before the market will be very well supported.”
"There is a lot of support towards the $6,000 area and it is very possible that we could see a pullback down to that level before the market will be very well supported." – @JoelKruger
“Legit boys, $6k might not have been the bottom after all. This OI, Basis, Funding is worse than Oct 2018,” he bearishly noted.
He was referring to the fact that these three metrics suggests bulls are still overleveraged, which means that to equalize the market, Bitcoin will need to fall a lot further than where it is currently trading at.
There’s also the below chart from a trader, showing that there are clear similarities between n Bitcoin’s price action in the 2013-2015 bubble and the price action over the past year.
Bitcoin following the trail blazed by its historical price action in 2014 and 2015 will see it fall in the coming months to fresh lows under $6,000s.
Long-Term Bullish On Bitcoin
While Kruger is warning of a potential retracement to the $6,000s, he is bullish on Bitcoin from a longer-term perspective.
He said in a January 9th interview with BlockTV that the cryptocurrency is currently positioning to clear $10,500 and $14,000 in the coming months, setting up for a rally to the $15,000 to $20,000 range by year’s end.
This has been echoed by a number of other analysts and investors, who claim that fundamental factors are likely to push BTC much higher than the current price by year’s end.
They cite fundamentals like the impending block reward reduction taking place in May, the perpetuation of “easy” monetary policy by central banks, increasing on-ramps for fiat money into the crypto market, and much more.