If the bitcoin price falls below the important year-to-date support level, the dominant cryptocurrency will suffer irreparable damage in the marketplace. This is the opinion of Renaissance Macro Research, quoted by CNBCon Thursday Aug. 9.
As per the monetary investigation firm, what bitcoin is confronting right currently could be substantially more critical than only a concise bear run or a retracement. The digital money could in certainty be confronting an existential emergency, with its key year-to-date bolster level being the cradle amongst it and more considerable harm. Break that level, says Renaissance Macro Research, and bitcoin will be "for all time weakened."
After a bull run took it well above $8,000, bitcoin has sunk back beneath $7,000, and its present cost is around 14 percent down on a similar time seven days prior. On Wednesday August 7, it lost around 6 percent of its incentive on news that the U.S. Securities and Exchange Commission (SEC) postponed a hotly anticipated choice on a proposed bitcoin Exchange Traded Fund (ETF).
This, nonetheless, could simply be the tip of the torment icy mass for speculators as indicated by Renaissance head of specialized tesearch Jeff deGraaf.
Addressing CNBC, he expressed that if the mentally imperative year-to-date bolster level is ruptured, he would prescribe taking short positions on BTC.
Speaking to clients on Thursday, deGraaf said:
“Parabolic moves are notoriously dangerous for short‐sellers … Usually a top develops that often appears as a descending triangle over months, with reduced volatility and little [fanfare]. Once the top is complete on the support violation, the security in question can often be considered permanently impaired or even ‘game‐over’. We are of course referencing Bitcoin as exhibit ‘A’ in today’s market.”
deGraaf’s words will come as bad news for cryptocurrency investors because he is a personality that markets generally tend to take note of when he speaks. As one of Wall Street’s best regarded forecasters since the turn of the millennium, deGraaf has been recognised severally for accurate predictions and peerless analysis. For a total of 10 years, he has been ranked as top technical analyst by Investor Magazine, and in 2014 he was inducted into the Institutional Investor’s Research Hall of Fame.
What all of this potentially means to an investor is that one of Wall Street’s finest analysts has painted a scenario where bitcoin — down about 50 percent in 2018 — is not going on a bear run it will recover from, but is rather drifting toward a position of permanent asset damage.
Earlier this week, reported that Pantera Capital CEO Dan Morehead urged investors to “stop overreacting” to the SEC’s delayed response to the proposed bitcoin ETF, as bitcoin continues to take a pounding.
Both Bitcoin bears and bulls will be watching the BTC price over the weekend. While some see a potential corrective rally occurring, others believe the cryptocurrency is at the end of its road.
One Wall Street analyst believes the latter. In fact, Jeff deGraaf said it’s “game over” for Bitcoin.
But is that true?
Wall Street Analyst Pessimistic about BTC Price
Yesterday, CNBCreported that Jeff DeGraaf of Renaissance Macro Research declared that Bitcoin is “permanently impaired.”
