Crypto Expert says Bitcoin need to drop lower before it can rally again
A leading crypto expert has said that Bitcoin needs to find its bottom before prices can improve again.
Cryptocurrency values may sink far lower, according to crypto expert trader Ran Neu-Ner.
Speaking about the cryptocurrency market on CNBC’s “Fast Money,” Neu-Ner said:
“We keep going down, and we’re testing new lows,”
“Sixty-two-fifty is the next point.
“If it goes under that, we’re going to test 5,900.”
Neu-Ner, who is the host of CNBC Africa’s “Crypto Trader,” said a key level for investors to watch is $5,000.
“That’s where the miners look at this and go, ‘Is it actually worth keeping the machine on?”‘ said Neu-Ner, CEO, and founder of OnChain Capita, adding:
“At about $5,000, if we don’t get a turn-up, then we may see a very different game in mining.”
Bitcoin fell below $7,000 on Sunday, plunging to $6,530 at the time of press, according to the live price charts.
The current values are the lowest since early February with roughly 3.5 percent losses in the last 24 hours.
A South Korean exchange announced that it had been hacked, over the weekend.
Due to the small size of the exchange and the minor losses during the hack, however, it’s unlikely that it had much impact on values.
According to Neu-Ner, such fluctuations are to be expected, due to the cryptocurrency market still being in its infancy, saying:
“We’re the internet before you had a real browser.
“And people are talking about a few exchange hacks.
“Those are to be expected from an industry that’s got a market capitalization of $300 billion; when we expect that one day this thing is going to have $20 trillion [in market cap].”
The crypto space is currently in a bear market, Neu-Ner said, adding:
“We can’t break out of that downward pattern.
“We can’t break the 8,000 or 8,500 level with convincing volume.”
Regardless, the early Bitcoin investor says that now is a perfect opportunity to buy cryptocurrency, “If you believe in the long-term of Blockchain.”
Short-term traders looking for fast returns may have better luck in other sectors, Neu-Ner said.
Investors looking to invest in the long-term of three to five years should buy, or HODL, Bitcoin, he said.
“It could go to 20, 30, 40, [or] 50,000.
“Then no one cares whether you bought it at 5 or 6.”