Bitcoin recovers some losses, jumps back up to $34K
Jared Blikre joins Myles Udland, Brian Sozzi, and Julie Hyman to discuss the cryptocurrency market's continued volatility as Bitcoin falls below $30,000 for a brief time which has sparked talks about a crypto winter.
Video Transcript
- Jared Blikre also was drawn some lines for us and telling us what's going to happen next.
- So what now Jared. You talked about yesterday that if we held below 30,000 that would be a Warning sign.
- We're back above it's only the next day, what does all of this mean?
- Well, it's a constructive price chart and a price pattern. I'm constructively bullish, but just mildly. And let's go to the Wi-Fi interactive and just see what's going on.
- You're going to see a lot of green here and we've seen this before. Bitcoin's up 7% either to even Dogecoin up 15%. And you can even sort by performance here and really see something that we've seen before. And guess what? It didn't last.
- So if we take a look at a chart, and we can see Bitcoin this is over the last two months. And that little spike down yesterday was very important. Looks like I've lost my Wi-Fi interactive feed, but you can see right there that little poke below 30,000 was immediately bought and we have some follow through today.
- So that is a bullish price pattern. And if you wanted to punt along and put your stop, and you have to obey your stops. But if you punt along and you put your stock down here, just below 28,500 or so, you could have a potentially good trade.
- But I don't want to get people's hopes up too much because we do need follow through. And if we poke down below 30,000 again, most likely, we're going to see a big, big tumble. But for the most part, I have been reading some constructive comments from other technical analysis on Twitter.
- It's just you can't get your hopes in too much because we do have some pretty big resistance. Around 40,000 potential resistance, I'll say, and also 45,000. We really don't have the all clear until we are able to regain those levels.
- Jared, I think you're right. One can't get their hopes up but got a good lengthy report out this morning from the Bank for International Settlements. Let me read to really one quote that stood out to me. They're saying, "Innovations such as cryptocurrencies, stablecoins, and the walled garden ecosystem of big techs all tend to work against the public good element that underpins the payment system."
- And Jared really my read on this. I'm curious on what your read would be it just continues the negative narrative on Central banks globally trying to crack down on crypto.
- Yeah, I tweeted something yesterday just a few thought experiments. If Bitcoin were to crash to 20,000, that's scratches a few inches. Because central banks of the world have been cautious about stable coins. Those compete with what the Federal Reserve wants to create its own digital currency. China already has one, so that's one thing it could possibly wipe out some exchanges.
- And then we could see some more consolidation in the industry. Wall Street is still getting into the institutional accumulation phase that would allow them to accumulate Bitcoin and either at lower prices.
- But it probably would do so much damage to the retail trader market. And unfortunately, Bitcoin would become dead money for potentially a year, that would force a lot of people out of the market.
- So I hope the 30,000 level holds, but you got to at least consider the possibility of lower prices maybe to 20 maybe even lower.
- Do you think that's always a possibility when it comes to this kind of price action and cryptocurrency?
- Thank you so much, Jared. We'll catch up with you in a bit.
