Bitcoin continues to trade in recent days just above the $ 31,000 level, dangerously close to the lows of recent months.
Meanwhile, the founder of the investment company DoubleLine Capital Jeffrey Gundlach, who is also known on Wall Street as the “king of bonds”, called the Bitcoin chart “frightening” and predicted a collapse of BTC to $ 23,000, writes forklog.
Gundlakh based his forecast on the figure of the technical analysis “head and shoulders” with a “neck” line of about $ 29,000. If this line is broken, the decline may accelerate.
“I don’t trust this figure, but this time everything looks quite convincing. I have a feeling that soon it will be possible to buy bitcoin below $ 23,000, ”he said.
The CEO of DoubleLine predicted a “significant weakening of the dollar” in the long term due to the US trade and budget deficits. In view of this, over a longer period of time, the first cryptocurrency will be able to show better dynamics than USD.
At the same time, Gundlach rejected the possibility of personal investment in cryptocurrency due to the lack of “risk tolerance”.
The head of DoubleLine Capital received the unspoken title of “king of bonds” from financial markets and the media in the fall of 2014, after the former “king of bonds” Bill Gross, the former co-president of PIMCO, left the company in a scandal.
Recall that at the end of June, the American bank JPMorgan gave a similar forecast for BTC. Bitcoin could drop to $ 25,000 due to the possible sale of shares of the Bitcoin fund Grayscale Bitcoin Trust after the six-month blocking period.
Units in Grayscale Bitcoin Trust have a deferred redemption mechanism. GBTC owners must keep them for six months before they can be sold. According to Bybt, about 40,000 bitcoins purchased in January will be unlocked in July.
“Cryptocurrencies, with their huge share of speculative capital, are not characterized by periods of calm at high prices: either rapid growth or a deafening collapse followed by consolidation. This dramatically raises the chances that the exit from consolidation will be downward with a potential target of $ 10,000 at some point next year, ”said the FxPro analyst team.
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