Bitcoin stays around $6,550, where next? Mike Novogratz and Mohamed El-Erian share their views


  • Mike Novogratz believes that market will grow from now.
  • Mohamed El-Erian says the correction is not over.

Bitcoin touched $6.576 during early Asian hours before retreating to $6,550 by the time of writing. The digital coin No.1 has gained 2.4% on a daily basis but stayed mostly unchanged since the beginning of Friday. BTC/USD managed to stay above critical $6,000 handle during the recent slump, which gave some hope for a sustainable recovery.

A famous Bitcoin investor Mike Novogratz believes that the market has bottomed, and now the recovery is on the way.

"This is the BGCI chart...I think we put in a low yesterday, retouched the highs of late last year and the point of acceleration that led to the massive rally/bubble... markets like to retrace to the breakout..we retraced the whole of the bubble." he said in his Twitter account, attaching Bloomberg Galaxy Crypto Index (BGCI) chart to the post.

Meanwhile, Allianz chief economic adviser Mohamed El-Erian says that Bitcoin's fair value is $5,000 and the price will experience another boot of downside correction. However, he admits, that crypto is going to be widely adopted by both the private and public sector.

“In terms of crypto, what we’re getting is the realization that adoption is not going to be as big and as quick as the proponents of crypto would like,” he says. “I think it’s going to be there, it’s going to last for a long time, it’s going to play a role in the ecosystem, but it’s not going to be the currency that a lot of proponents would like it to be.”

Bitcoin's technical picture

BTC/USD broke above $6,530 (23.6% Fibo retracement weekly that stopped the recovery on September 7) and now moved towards $6,600. Once this resistance is cleared, the upside movement will take the price to the short-term target at $6,800 (23,6% Fibo retracement) and $7,000.

On the downside, BTC is supported by $6,500. This area is followed by $6,340/50 (SMA50 and SMA200, 1-hour chart), while the critical support is created by the upside trendline currently at $6,230.

BTC/USD, 1-hour chart


Get 24/7 Crypto updates in our social media channels: Give us a follow at @FXSCrypto and our FXStreet Crypto Trading Telegram channel

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility.

Cryptos feed

Latest Crypto News & Analysis

Editors’ Picks

BTC/USD in a precarious position as lack of healthy support levels can see it drop back below $7,000

BTC/USD bulls have come out on top so far this Wednesday, as the price has gone up from $7,218.50 to $7,253.25. This follows a bearish Tuesday wherein the price dropped from $7,340 to $7,218.50. The daily confluence detector shows ...

More Bitcoin News

EOS/USD drops amidst growing centralization concerns

EOS/USD has had an interesting December so far, to say the least. While its price has moved pretty sluggishly, there are a lot of pieces moving in the background. Let’s take a closer look at all these moving parts and see how the price is acting in different time frames. 

More EOS News

Tron Price Analysis: TRX/USD defends $0140 support for the second time

Tron has been disintegrating since the highs formed in November at $0.0230. The buyers tried to nurse initial losses in a range between $0.0180 and $0.0200 but failed. 

More Tron News

Bitcoin Cash price analysis: 20-day Bollinger jaw narrows considerably as market volatility goes down

BCH/USD has dropped from $206.65 to $206 in this early hours of Wednesday and is on course to chart its third straight bearish day. The hourly breakdown of Tue ...

More Bitcoin Cash News

BEST CRYPTO BROKERS/EXCHANGES

Bitcoin Weekly Forecast: It's all about whales again

On the cryptocurrency market, regulators, governments and central bankers and other big names like that are inferior to whales when it comes to generating trends and price movements.

Read the weekly forecast

BTC

ETH

XRP