Bitcoin Price: BitMEX CEO Affirms Bear Call, Says BTC May Fall to $2,000

What a disagreement a pair of months can produce. It appears to be like take care of a lifetime ago that Arthur Hayes, CEO of cryptocurrency derivatives platform BitMEX, predicted that the bitcoin label could well perchance reach $50,000 in 2018. Basically, it has been decrease than six months, though the events that maintain came about for the duration of that interlude maintain been ample for Hayes to slit his brief-term crypto forecast by extra than ninety five p.c.

CCN reported earlier this week that Hayes, a feeble Citigroup dealer, is now predicting that the bitcoin downtrend could well perchance last one more 18 months, mirroring the “nuclear endure market” the crypto industry skilled in 2014 and 2015. Writing in Friday’s edition of the BitMEX Crypto Trader Digest, Hayes doubled down on that portentous outlook.

Whereas chart-watchers most ceaselessly take care of endure markets as starting as soon as an asset dips below its cyclical height, Hayes said that the next approach could well perchance well be to impress the starting of the endure market because the date at which the bitcoin label falls below its 200-day transferring moderate (DMA). By this metric, bitcoin entered bearish territory on March 12 when it became once priced at $9,152 and has greatest considered a 37 p.c decline since shedding below the 200 DMA.

bitcoin label endure markets
Source: BitMEX

Offered that previous endure markets maintain considered bitcoin destroy significant extra below its 200 DMA, he argued that it’s most likely we silent maintain a lengthy approach to head prior to the bears attain twisting the knife, presumably shedding BTC as low as $2,000 prior to the bulls receive their footing.

“How low can we dash?” he requested. “A seventy five% topple from $9,152 takes us shut to $2,000. $2,000 to $Three,000 is my contemporary candy station but don’t explain Michelle Lee lawful but.” [Note: Hayes is likely referring to CNBC host Melissa Lee]

Hayes additionally cited the decline in bitcoin volatility as justification for his bearish outlook, taking a particular tack from Fundstrat founder Tom Lee, who said that he became once “pleasantly deal surprised” to maintain a examine the decline in volatility given prerequisites within the broader equities markets.

bitmex bitcoin volatility chart
Source: BitMEX

He wrote:

“Opposite to well-liked belief, Bitcoin requires volatility if it’s far ever to invent mainstream adoption. The price of Bitcoin is the well profitable and most transparent approach to be in contact the well being of the ecosystem. It advertises to the area that something is taking place–whether that’s obvious or damaging is irrelevant.”

“The Bitcoin label volatility is the gateway drug into the ecosystem,” he endured. “If volatility stays at these unfortunate ranges, the worth will slowly leak decrease. For those of us who lived by the 2014-2015 endure market, all of us sit up for that sinful ass candle that breaks the soul of the bulls. Then, and greatest then, will volatility and the worth ratchet greater.”

In the interval in-between, Hayes said that the well profitable traders could well perchance extinguish is are trying and obtain in touch with the backside, though they presumably obtained’t maintain the fortitude to act when their instincts explain them that the bottom is in.

“The major consideration to ‘calling the backside’ is the worth action across the last gasp of the bears. That you might want to well are aware about it’ll you see it,” he concluded. “And the well profitable segment is, you presumably could be too chicken to click on that oh so frightening Procure button.”

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