Huge drop possible, but Bitcoin hanging on ‘like Tom Cruise’
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Bitcoin is hanging “like Tom Cruise, by his fingerprints from the cliff there,” one very quotable Aussie analyst says.
But Carl Capolingua with ThinkMarkets isn’t expecting the original cryptocurrency to be able to claw its way up the way the Hollywood superstar did in the famous opening scene from Mission Impossible 2 – and is instead predicting a huge fall.
“Bitcoin’s hanging onto this US$30,000 level, or specifically about 31,000,” the Perth-based analyst told Ausbiz TV this morning.
“You can see on the chart, one, two, three, four tests of this zone. And there’s an old saying, it isn’t really technical analysis, the longer it takes for something to bounce, the less likely it’s going to bounce.
“This extension is just dragging on.”
Capolingua said that in his long experience with markets, “85, 90 per cent of the time when you see a chart like this, the next move is to the downside.”
But Capolingua said he’s looking to buy Bitcoin at $20,000.
“I think that’s going to be the major long-term low. I noticed there’s a lot of cash out there waiting to do the same thing.”
Chinese Bitcoin miners need to sell to cover their relocation costs after a crackdown on mining in the country, Capolingua added.
He predicted the crash could come this weekend, always a volatile time for crytocurrencies.
At lunchtime on Friday (Sydney time), Bitcoin was trading for US$31,850, down 2.8 per cent from yesterday.
Ethereum was changing hands for US$1,939, down 2.7 per cent.