Bitcoin could go higher but ‘not before it goes lower’
- Rob Ginsberg says Bitcoin could go further down in the near-term.
- The Wolfe Research analyst explained why in a research note today.
- Bitcoin (BTC) has already lost more than 11% in about a month.
Bitcoin has already lost more than 11% in about a month but a Wolfe Research analyst says a further price decline is still likely.
Bitcoin could see more weakness ahead
Rob Ginsberg is convinced that the world’s largest cryptocurrency that has pulled back sharply from its year-to-date high in recent weeks will eventually break out to the upside.
In the near-term, though, he expects Bitcoin to see more weakness. According to the analyst’s research note on Thursday:
Could it finally breakout and expand higher? Certainly, but likely not before it goes lower, as has been the trend.
Note that the BTC has aggressively rallied following a period of tight consolidation over the past two years. Christopher Jaszczynski – another crypto analyst also dubbed Bitcoin on knife’s edge today (read more).
Headwinds that could weigh on Bitcoin
A day earlier, the U.S. Federal Reserve released minutes of its July meeting that showed most members saw a possibility of further rate hikes ahead – a potential headwind for Bitcoin.
Wolfe Research analyst Rob Ginsberg noted the U.S. dollar regaining strength as a mounting challenge for the cryptocurrency as well.
These near-term headwinds are likely to force price lower and keep volume muted across the space. If history is any indication, however, when price does expand, expect it to be abrupt.
He said the $31,000 level was one to watch as it coincides with a key resistance. Bitcoin has rejected from that level multiple times this year.