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Bitcoin course sets for new rally, according to expert

Bitcoin course sets for new rally, according to expert

On the CNBC television program “Fast Money,” Brian Kelly was again questioned about the short-term prospects of Bitcoin. Kelly explained why he sees light at the end of the tunnel after Bitcoin's (BTC) light recovery.

As a reason for the positive outlook, Kelly cited the phasing out of futures contracts on the Chicago Option Exchange CBOE. Kelly referred to Justin Saslaw, a friend and investor at Raptor Capital Management. Therefore, this market behavior has been well documented in the past.

Kelly explained on the basis of a chart:

“This happens with Bitcoin before and after the expiry of the contracts. Prior to expiry, Bitcoin declined by nearly 7 percent in 2018. Then came the expiry dates and over the next six days the price rose by about 6 percent. This basically works on average at each expiration date. “

To underline his argument, Kelly then talked about the peak in April after the futures expired. At the time, Bitcoin had a price high of $ 6,000, peaking at over $ 8,000. That's a 20-percent increase in six days after the expiration of futures contracts.

Bitcoin price is on a new high

Kelly also talked about the contracts on Bitfinex. These had ensured a peak in April. A new high would soon follow, Kelly explained. So he said:

“We are on a new high. There is currently some short squeeze. We see a kind of short-term seasonal business after the futures expire. There is a possibility of a large short squeeze for Bitcoin over the next six days. “

The term” short squeeze “describes a supply shortage in the marketplace where the stock market price of a stock or cryptocurrency by cover purchases from short sellers.

Next, CNBC Kelly asked if that would have a positive impact on the other Altcoins. Kelly responded by explaining the market relationships of Bitcoin and other cryptocurrencies. The Altcoin markets have suffered losses during the last bear phase, Kelly said. Most large cryptocurrencies would have lost more than 10 percent of their value. He also stated that the markets were still following Bitcoin. This has been evident in the past 60 days and has been linked to speculation about a Bitcoin exchange traded fund (ETF).

Finally, Kelly talked about Bitmain's upcoming IPO. He assumes that this IPO will stabilize the market, said Kelly. He said:

“The highest level of mining costs is around $ 5,900. It's about the world's largest miner, Bitmain, who plans an IPO in the fourth quarter. This could stabilize the Bitcoin market (…) “

Bitcoin course sets for new rally, according to expert

Sources: Twitter, boerse.ARD.de, Pixabay

Author: Peter Joost – Source Post: https://www.kryptovergleich.org/bitcoin-kurs-setzt-zu-neuer-rallye-an-laut-experte/

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