The head of BKCM LLC Brian Kelly named three reasons in favor of an early correction of BTC to $ 12 thousand. But this does not negate the chances of strengthening of the coin to $ 50 thousand in the long term.
Bitcoin holders should now becautious, probably, its rate has already reached a temporary maximum, says Brian Kelly, CEO of BKCM LLC. In an interview with CNBC, he said that he was still confident in the long-term growth of the asset to $ 50 thousand, but in the near future its price could fall to $ 14 thousand, possibly to $ 12 thousand.
Giddy up for Bitcoin as it rode past the $ 19K mark today for the first time since 2017. But @BKBrianKelly says you might want to hold your horses with the trade. Here's why. pic.twitter.com/rc2ZKsBsEQ
- CNBC's Fast Money (@CNBCFastMoney) November 24, 2020
Kelly named several reasons for the possible fallquotes of the first cryptocurrency. One of them, he believes, is the beginning of the jump in the price of altcoins, which may signal in favor of an imminent correction of the market. For example, the XRP token rate in November rose from $ 0.24 to more than $ 0.9, now it has dropped to $ 0.67. Similar movements in the coin market took place at the end of 2017, when BTC set an all-time high of $ 20K and then entered a long-term decline.
Another signal in favor of an early Kelly correctioncalled a sharp increase in the number of new users. Over the past month, the number of new Bitcoin addresses has increased by 25%. The expert added that the size of the commissions charged by exchanges for opening long positions is also of concern, since this indicates a large number of them. If a correction begins, the liquidation of the longs will accelerate the fall in the bitcoin rate.
At the moment, the main digital asset is worth $ 19thousand. Over the past day, it has risen in price by 3%, since the beginning of September - more than 90%. The daily turnover of BTC trades increased by 21% and reached $ 54 billion. The share of the first cryptocurrency on the market decreased to 61.5%.</p></p>