Time to Start Buying Bitcoin Again? | Crypto Markets

Hey everyone. Today I am joined by senior market analyst Mati Greenspan to bring you the latest market updates. My name is Jackson and welcome to this week's Crypto markets. So bitcoin is hovering around that high 7k low 8k range. But many analysts have said that we could see a further drop to 6k or even as low as 5k in the near future. What do you think about these predictions and do you, or do you think that Bitcoin will continue to fall or does it have enough support to stabilize around its current price?

Yeah, so what we've been watching lately, I mean we've been focusing very heavily on the 200 day moving average, which is this blue line over here at the moment, it's testing it. We haven't seen any new lows recently, but we are as you mentioned, hovering around 8,000. If you'll remember a few months back when we were trading at the 10-13k range, I was talking about a lot of customers and a lot of people in the community who are mentioning eight to eight and a half thousand as their buy zone. So this is really that opportunity that they were looking for at that time. Now obviously anything can happen. We do hope for a nice break above that. For support at 8k to hold would be wonderful and that would definitely give a K, a bullish case to resume that long term trend. However, if we do continue to fall, if we break below significantly, then we do have some retracement coming by way of the Fibonacci retracement levels which is showing support at around 7,000. So I can draw that for you here. If we draw it from the all time high to the recent lows, you'll notice that this, this pattern has emerged. So the Fibonacci retracement, for those of you who are not familiar, basically shows patterns in nature and likelihood of specific outcomes. And if we draw from this entire movement from the high all the way to the lows, we can see that these, that this pattern is holding up. We did see significant support over here, some resistance levels over here, and at the moment we would look for that level over there, which is about 7,000. Certainly more support coming around 6,300 if we get that low, which is where the great stabilization was, and so on and so forth. So there is plenty of support in this region. However, liquidity being what it is, in this market, anything is really possible.

So is it actually possible for this to continue to move just sideways instead of going up or down?

I think that's probably the most likely scenario really. I mean if we're going to be, if we're going to be straight. And I think that that would actually be the best for bitcoin. And we've mentioned many times in the past stabilization, price stabilization is a good thing. Now that we have Bakkt online, we know that price discovery is going to be a lot cleaner, which generally leads to price stabilization. But the use case of bitcoin as a store of value is significantly enhanced when there is less volatility.

In a bullish scenario. What is your buy zone?

I'm already buying. I mean I've bought in a little bit once we hit that 200 day moving average. But the lower it goes, the more I want to buy really.

So are you moving more of your portfolio into Bitcoin or are you working with altcoins or fiat?

At the moment I'm making very small adjustments as far as the crypto markets are concerned. I've been focusing a lot lately on other opportunities, specifically cannabis and renewable energy in my portfolio. Crypto as a whole is about 10% or less at the moment.

Interesting.

Yeah. I mean if it continues, if it starts surging again, I'll pile more on. I mean I'm pretty versatile like that. But as long as there is that danger zone right now, there is that possibility to fall below, I have no reason to hold that risk.

So what does that mean for the mentality of like other traders? Because if it continues to move sideways like this, do you think people will be sort of, you, you know, hesitant to buy into the market because they're worried about a coming drop?

Well, you know, we're talking about a lot of speculation here, which is what I'm doing, which is what you're doing, which is what a lot of our, a lot of your viewers are probably doing as well. But we need to remember the use case of bitcoin and the reason that it exists to begin with. And those things are increasing in prevalence. So for example, Argentina, Venezuela, Turkey, Iran and now Hong Kong has joined the list of countries that would generally like to divest from their local economy or you know, have some sort of an alternative store of wealth other than their local fiat currency. So as far as that's concerned, what we'll see in the meantime, as far as price fluctuations, I mean they don't really have an impact on the viability of bitcoin. I mean, even if bitcoin goes down to 2 or 3,000 or even below, I mean, I think that those people in those countries would be celebrating those prices.

So Bitcoin and a lot of the major altcoins have made these downward movements in the past week or two weeks, except notably for xrp, which has not seemed to be correlated with the rest of the market. Why do you think that is?

Yeah, so XRP is very interesting. I also noticed Tron and IOTA coming up, but by far over the last 24 hours, XRP is the winner. I think that the rebrand that they've done recently is an incredible step forward for them. So basically they have all of these products at Ripple Labs, so X Rapid, xvia, X Current, and now they've got a new one as well. And what they've done recently is they've basically restructured their website in a way that all of their clients will have easy access to all of their services. So that means that some of those services that use, that don't use XRP and that some of their financial institutions are already using. So those same financial institutions will have easy access to use the services that do utilize xrp. And I think that that gives, that gives way to speculation that they'll be able to, that there'll be more demand on that token.

So you believe that the interest in XRP is based off of the use cases behind it? Because a lot of people seem to think that there's some sort of market manipulation going on behind XRP's price movements or lack thereof.

Yeah, I'm in that camp as well. You should know, Jackson. I mean, you have to realize that at the moment, more than half of the total supply of XRP, which is 99 billion tokens, is being held by Ripple Labs directly. And they have the option to sell up to 1 billion tokens per month. And they have been selling off pretty, you know, pretty aggressively so far this year, which is probably why we haven't seen it rising as the other cryptos did during the first half of the year. The good note is that as they sell off more XRP and, and they take in some more fiat money into their treasury chest, they are using that money as strategic investments to grow the network. For example, the purchase of MoneyGram. Right. They've purchased a significant stake in MoneyGram so that MoneyGram will be able to use their services. So they are using that money to make investments. So as a long term investment, this is why I'm very happy to have it in my portfolio. But obviously there are risks involved. So this is why it is as part of a diversified overall portfolio.

Gotcha. So let's do one more question. And this one, this one, this one's for the viewers. All right. Is bitcoin going to 100k or is it going to zero?

Well, look, Bitcoin does, can't really go to zero. I mean, I think that there would be a lot of buyers. I think that it would have to be completely. Somebody would have to make a. You know, the scenario for Bitcoin to go to zero would have to be something along the lines of some programmer created a easy way to produce fake bitcoins. I think that that would be like the really the only way. But I don't think that's very likely or possible. We've even seen cases before where some minority cryptos, not to name any names like Ethereum Classic or Verge or anything like that, but they have been hacked, they have been double spent. And even then the price was not so incredibly dramatic on their network because the community is there. The community is there to speculate that the long term viability will go up and that the programmers will move in the, to plug the holes. Bitcoin, of course, is that times a million where you have that community, you have the programmers who can move to defend Bitcoin under those type of scenarios. So for Bitcoin to see zero, I think that there is an incredibly low probability of that. I would say something along the lines of 0.0 and a lot of different zeros following it to a million dollars. I think that it's possible, but I think that that would have also to be under very, very extreme circumstances. So that would have to do something, something along the lines of mass devaluation of the US dollar, for example, could bring it to a million. Right? Bitcoin could stay the same amount of value that it is right now, but if the dollar goes down, it can go down in relationship to Bitcoin. We hope that that doesn't happen because obviously that would have devastating consequences on all of the people on this planet. And so my hope, as I said before, is that we get some sort of a stabilization if the more we see Bitcoin as stable, the better off it is for us. The better it off it is for the people in the third world countries who need it, and the better off it is for humanity.

So you think that as long as bitcoin is stable, regardless of actually what price it's stable at, it's just better?

Yes, 100%.

Excellent. All right, thank you everyone for watching. This has been Jackson with senior market analyst Mati Greenspan, bringing you the latest in this week's crypto market updates. Always remember to like subscribe and HODL.

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