Time to Start Buying Bitcoin Again? | Crypto Markets


Hey, everyone, today I am joined by senior
market analyst Mati Greenspan to bring the
latest market update. My name is Jackson and
welcome to this week’s Crypto Markets.
So, Bitcoin is hovering around that high $7K,
low $8K range. But many analysts have said
that we could see a further drop to $6K or
even as low as $5K in the near future.
What do you think about these predictions?
Do you think that Bitcoin will continue to
fall or does it have enough support to stabilize
around its current price?
So what we’ve been watching lately, I mean,
we’ve been focusing very heavily on the 200-day
moving average, which is this blue line over
here. At the moment, it’s testing it. We haven’t
seen any new lows recently, but we are, as
you mentioned, hovering around $8,000. If
you’ll remember, a few months back when we
were trading at the $10K to $13K range, I
was talking about a lot of customers and a
lot of people in the community who are mentioning
$8,000 to $8,500 is their buy zone.
So this is really that opportunity that they
were looking for at that time. Now, obviously,
anything can happen.
We do hope for a nice break above that for
support of $8K to hold would be wonderful.
And that would definitely give a bullish case
to resume that long term trend. However, if
we do continue to fall, if we break below
significantly, then we do have some retracement
coming by way of the Fibonacci retracement
levels, which is showing support at around
$7,000. So I can draw that for you here. If
we draw it from the all-time high to the recent
lows, you’ll notice that this pattern has
emerged. So the Fibonacci retracement, for
those of you who are not familiar, basically
shows patterns in nature and likelihood of
specific outcomes. And if we draw from this
entire movement from the high all the way
to the lows, we can see that this pattern
is holding up. We did see significant support
over here, some resistance levels over here.
At the moment, we would look for that level
over there, which is about $7,000. And certainly
more support coming around $6,300 if we get
that low, which is where the great stabilization
was. And so on and so forth. So there is plenty
of support in this region. However, liquidity
being what it is in this market, anything
is really possible.
So is it actually possible for this to continue
to move just sideways instead of going up or down?
I think that’s probably the most likely scenario,
really. I mean, if we’re going to be straight
and I think that that would actually be the
best for Bitcoin. And we’ve mentioned many
times in the past price stabilization is a
good thing. Now that we have Bakkt online,
we know that price discovery is gonna be a
lot cleaner, which generally leads to price
stabilization. But the use case of Bitcoin
as a store of value is significantly enhanced
when there is less volatility.
In a bullish scenario, what is your buy zone?
I’m already buying. I mean, I’ve bought in
a little bit. Once we hit that 200-day moving
average, but the lower it goes, the more I
want to buy, really.
So are you moving more of your portfolio into
Bitcoin or are you working with altcoins or fiat?
At the moment, I’m making very small adjustments
as far as the crypto markets are concerned.
I’ve been focusing a lot lately on other opportunities,
specifically cannabis and renewable energy
in my portfolio. Crypto as a whole is about
10% or less at the moment.
Interesting.
I mean, if it continues, if it starts surging
again, I’ll pile more on. I mean, I’m pretty
versatile like that, but as long as there
is that danger zone right now, there is that
possibility to fall below, I have no reason
to hold that risk.
So what does that mean for the mentality of
other traders? Because if it continues to
move sideways like this, do you think people
will be sort of, you know, hesitant to buy
into the market because they’re worried about
a coming drop?
Well, you know, we’re talking about a lot
of speculation here, which is what I’m doing,
which you’re doing, which is what a lot of
your viewers are probably doing as well. But
we need to remember the use case of Bitcoin
and the reason that it exists to begin with.
And those things are increasing in prevalence.
So, for example, Argentina, Venezuela, Turkey,
Iran and now Hong Kong has joined the list
of countries that would generally like to
divest from their local economy or, you know,
have some sort of an alternative store of
wealth other than their local fiat currency.
So as far as that’s concerned, what we’ll
see in the meantime, as far as price fluctuations,
I mean, they don’t really have an impact on
the viability of Bitcoin. I mean, even if
Bitcoin goes down to $2,000 or $3,000 or even
below, I mean, I think that those people in
those countries would be celebrating those
prices.
So, Bitcoin and a lot of the major altcoins
have made these downward movements in the
past week or two weeks, except notably for
XRP, which has not seem to be correlated with
the rest of the market.
Why do you think that is?
Yeah, so XRP is very interesting, I also noticed
Tron and IOTA coming up, by far over the last
24 hours, XRP is the winner. I think that
the re-brand that they’ve done recently is
an incredible step forward for them. So basically
they have all of these products at Ripple
Labs, so xRapid, xVia, xCurrent and now they’ve
got a new one as well. And what they’ve done
recently is they’ve basically restructured
their website in a way that all of their clients
will have easy access to all of their services.
So that means that some of those services
that don’t use XRP and that’s some of their
financial institutions are already using so
those same financial institutions will have
easy access to use the services that do utilize
XRP. And I think that that gives way to speculation
that they’ll be able to either there’ll be
more demand on that token.
So you believe that the interest in XRP is
based off of the use cases behind it? Because
a lot of people seem to think that there’s
some sort of market manipulation going on
behind XRP’s price movements or lack of movements.
Yeah, I’m in that camp as well, you should
know, Jackson. I mean, you have to realize
that at the moment, more than half of the
total supply of XRP, which is 99 billion tokens,
is being held by Ripple Labs directly and
they have the option to sell up to one billion
tokens per month. And they have been selling
off pretty aggressively so far this year,
which is probably why we haven’t seen it rising
as the other cryptos did during the first
half of the year. The good note is that as
they sell off more XRP and they take in some
more fiat money into their treasury chests,
they are using that money as strategic investments
to grow the network. For example, the purchase
of MoneyGram, right? They’ve purchased a significant
stake in MoneyGram so that MoneyGram will
be able to use their services. So they are
using that money to make investments. So as
a long term investment this way, I’m very
happy to have it in my portfolio, but obviously
there are risks involved. So this is why it
is as part of a diversified overall portfolio.
Gotcha. So let’s do one more question. This
one’s for the viewers, all right. Is Bitcoin
going to $100K or is it going to $0?
Look, Bitcoin can’t really go to zero. I mean,
I think that there would be a lot of buyers.
I think that it would have to be completely,
somebody would have to make, you know, this
scenario for Bitcoin to go to zero would have
to be something along the lines of some programmer
created an easy way to produce fake Bitcoins.
I think that that would be like the really
the only way. But I don’t think that that’s
very likely or possible. We’ve even seen cases
before where some minority cryptos, not to
name any names, like Ethereum Classic or Virge
or anything like that, but they have been
hacked, they have been double spent. And even
then the price was not so incredibly dramatic
on their network, because the community is
there, the community is there to speculate
that the long term viability will go up and
that the programmers will move in to plug
the holes. Bitcoin, of course, is that times
a million where you have that community, you
have the programmers who can move to defend
Bitcoin under those type of scenario. So for
Bitcoin to see zero, I think that there is
an incredibly low probability of that. I would
say something along the lines of zero point
zero and a lot of different zeros following
it. To a million dollars, I think that it’s
possible, but I think that that would have
also to be under very, very extreme circumstances.
So that would have to do something, something
along the lines of mass devaluation of the
U.S. dollar, for example, could bring it to
a million, right. Bitcoin could stay the same
amount of value that it is right now. But
if the dollar goes down, it can go down in
relationship to Bitcoin. And we hope that
doesn’t happen because obviously that would
have devastating consequences on all of the
people on this planet.
So my hope, as I said before, is that we get
some sort of a stabilization if with the more
we see Bitcoin as stable, the better off it
is for us, the better it off it is for the
people in the third world countries who need
it and the better off it is for humanity.
So you think as long as Bitcoin is stable,
regardless of actually what price it’s stable at, it’s just better?
Yes, hundred percent.
Excellent. All right, thank you, everyone,
for watching. This has been Jackson with senior
market analyst Mati Greenspan bringing you
the latest in this week’s crypto market updates.
Always remember to like, subscribe and hodl.

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