Bitcoin (BTC) Fails To See Short-Term Rebound, Price Remains at $6,400-$6,500
As covered by Ethereum World News previously, prices throughout the entirety of the cryptocurrency market saw a sharp decline on Wednesday, with altcoins capitulating in value across the board. At one point, ETH hit a value of $210 and BTC temporarily was at $6,300, not the most promising sign, to say the least.
Since there didn’t seem to be a single clear catalyst for this market move, some claimed that this was evidently an irrational sell-off and that a strong bounce was likely in the days following the initial drop. However, after 48 hours since this violent bout of selling pressure, the market has still not recovered, leading some to question whether a rebound could occur. At the time of writing, BTC has found a place to stand at $6,420, with there being no discernable evidence that indicates that the price of the asset will move any time soon.
Despite Lack Of Near-Immediate Rebound, Analyst Claims That One Is Inbound
Naysayers aside, “Futures Now” traders recently appeared on CNBC to discuss how the crypto market looks moving forward. Brain Stutland, CNBC Futures Now’s first guest, commenced the segment, giving his personal opinions and analysis on how to play the market in the near-future. He noted:
I may be (currently) short on Bitcoin futures, but I’m long on the physical tokens… I’m looking at the September (Bitcoin) futures contract and I would be willing to buy it actually at this point. $6,450 is my level (to buy in at), I’m looking for the September futures to trade up to $7,250 on the CBOE futures contract with the stop out at $5,950.
Elaborating on why he could see the price of the asset head upwards, the CNBC guest first brought up the idea of the $6,000 support level, claiming that the price of the asset could see a rebound if it nears $6,000 or stays at current levels. Stutland added that the break-even cost of mining is currently at $7,000 for Bitcoin miners that do not have access to affordable electricity, with this figure indicating that prices could head higher.
The trader attributed the most recent drastic sell off to the Goldman news, even though the claim that the firm was dropping its plans to establish a crypto trading desk was rebutted by one of the financial institution’s own. Although this news may have dampened the spirits of Bitcoin bulls from the get-go, Stutland stated that it is time to “forget about those guys,” adding that Bitcoin wasn’t created to be actively traded on the sheets of traditional financial institutions, or centralists if you may.
“I Would Like To See The Volatility Contract”
Speaking more on what direction he would like to see the market head in, Stutland pointed out that the volatility of this early-stage asset class is what is putting off many investors.
But as many like to note, the volatility of this market should not be seen as a fault, as with any nascent asset class or industry, large price swings are a common occurrence and to be expected. Closing the segment, the trader said that it may take some time for volatility and prices to settle, but following a year or so, retail investors will likely be ready to pour money back into this otherwise slumping market.