Tanya Abrosimova
Independent Analyst
- Mike Novogratz points out to Bitcoin's long-term bull’s trend.
- The cryptocurrency may find support on approach to $9,000.
There is no reason to panic even though Bitcoin has fallen below $10,000, according to the prominent cryptocurrency investor and a founder of merchant bank Galaxy Digital Mike Novogratz.
The bull market of 2019 is still valid, he said speaking in the interview with Bloomberg TV. Despite the recent sell-off, BTC is still up over 200% from the levels registered at the beginning of the year, which means that long-term investors are making profits.
“Bitcoin started the year at $3,800, traded at $3,500 and now it’s at $10,200 and so it’s up 200% odd percent already. It has had a huge run, and so I think this is a bit of consolidation,” he explained.
Notably, Bitcoin collapsed in a couple of hours after Novogratz comments. The first cryptocurrency lost about $500 of its value in a matter of minutes and touched $9,321, which is the lowest level since July 18. At the time of writing, BTC/USD is changing hands at $9,480, down 7% on a day-on-day basis.
Novogratz believes that increased institutional interest will lay the ground for the next strong bull cycle for Bitcoin.
“The institutions that are making longer-term decisions are making sure they’ve got custody, making sure their ducks are lined up — and they’re slowly and steadily moving in,” he commented.
Sure enough, he is not the only hardcore bull out there. The CEO of deVere Group, Nigel Green, claimed recently that $10,000 was a new bottom for BTC - right before the bears, smashed it away.
Looking technically, BTC/USD may extend the downside towards $9,000. This area strengthened by the middle line of weekly Bollinger Band serves as strong support that is likely to tame the bears and attract new buyers to the market. Once it is out of the way, the downside correction may gain traction with the next focus on $7,500. This area is guarded by SMA100 (Simple Moving Average) weekly and SMA200 daily.
BTC/USD, weekly chart
Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.
Recommended Content
Editors’ Picks
MANTA suffers 4% pullback after unlocking tokens worth $40 million
Manta Network (MANTA) unlocked over 8% of its circulating supply on Thursday. The unlocked tokens were airdropped and distributed in public sale, according to data from Tokenunlocks.
XRP struggles to recover as lingering Ripple lawsuit could reach Supreme Court, former SEC litigator says
The SEC vs. Ripple potential showdown at the Supreme Court is likely, says former SEC litigator Ladan Stewart. XRP Ledger calls developers, businesses and investors to build on the blockchain, extending Apex 2024 registration until April 30.
Bitcoin Layer 2 Merlin chain TVL climbs 20%, defying broad market correction
Merlin chain’s TVL added 20% this week, and crossed $800 million on Thursday. Bitcoin Layer 2 assets noted double-digit losses in the past week. Stacks, Elastos, SatoshiVM, BVM are hit by a correction as Bitcoin hovers around $61,000.
If Bitcoin restarts bull run, these altcoins are likely to explode Premium
If Bitcoin’s consolidation ends and the bull run resumes, altcoins are likely going to trigger a massive rally. Last cycle’s hot tokens like SOL, AVAX, WIF, ONDO, etc., could see renewed enthusiasm.
Bitcoin: BTC’s rangebound movement leaves traders confused
Bitcoin (BTC) price has been hovering around the $70,000 psychological level for a few weeks, resulting in a rangebound movement. This development could lead to a massive liquidation on either side before a directional move is established.