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Bitcoin [BTC] bull Brian Kelly capitulating is good sign indicating bottom is near, says Mike Novogratz

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Bitcoin [BTC] bull Brian Kelly capitulating is good sign indicating bottom is near, says Mike Novogratz
Source: Unsplash

Mike Novogratz, spoke with Bloomberg about the recent rally of Bitcoin and the capitulation that many people are going through with the plunge in the prices. He also touched on Bitcoin being the store of value for the future and compared it to the gold market.

Novogratz said that his company has been busy with asset management, OTC trading, and advisory businesses even though the market has been taking hits. He added that it was tough getting money from outside investors, but that it would get easier as institutions step in.

He agreed that the cavalry was coming in and added:

“I’ve always said that we needed institutional custody and in January Fidelity opens up their shop, which is institutional custody, in January Bakkt, which is ICE’s and NYSE’s opens up their shop.

And when I talk to those two groups, they’ve got customers lined up to start. So I really do think by February, March or April, you’re gonna see institutions dipping thier toes and getting into this space”

Touching on the current price of Bitcoin, Novogratz said that it cannot rise to a point between the $3,000 and $6,000 range in the foreseeable future, but he said that the bottom is close by. He also added that many people are capitulating and stated:



“And quite frankly, in the last few days, we’ve seen big capitulation both in price and from some big spokesmen, Brian Kelly who’s been a big advocate of crypto, turned bearish on the lows, those are usually good signs that the end is close.”

Referring to his earlier comment about how all the gold ever mined in history could fit into two-and-a-half Olympic-sized swimming pool, he said that it could be a 20-meter cube and said that it was mind-boggling that was worth a massive $8 trillion.

He continued:

“If you bought Bitcoin two years ago vs the S&P or any other asset, you’re still up more, if you bought Bitcoin two years ago vs gold, you’re still up more, if you bought Bitcoin a year ago, quite frankly, you’re up more.

So, you’ve got to sometime step back from the immediate and look at the slope we’re going on, it’s actually close to a miracle that some  guy created a program and 10 years later still has $80 billion of value as a digital store of value, that got David Swenson from Yale to invest in it, that got Abby Johnson from Fidelity to say “we’re gonna build business over in crypto”.

So it’s easy to smash it right now, but if you step back and look at it in a broader perspective its pretty cool”





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Akash is your usual Mechie with an unusual interest in cryptos and day trading, ergo, a full-time journalist at AMBCrypto. Holds XRP due to peer pressure but otherwise found day trading with what little capital that he owns.

Analysis

Bitcoin [BTC]: King coin’s Golden Cross confirmed; Greenspan hints at bullish market

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Bitcoin [BTC]: King coin’s Golden Cross confirmed; Greenspan hints at bullish market
Source: Pixabay

Bitcoin’s much-awaited Golden Cross, which many analysts claimed will lead to a resurgence of a bullish market, has been confirmed. The intersection of the 200-day moving average and 50-day moving average, which indicates the Golden Cross, was achieved over the past few hours.

Earlier today, the top cryptocurrency saw a massive rise after days of sideways movement. Bitcoin’s ascendance saw it break the $5,350 resistance level, which eToro’s Mati Greenspan had previously suggested will consolidate “buying pressure.”

Source: TradingView

Additionally, a major psychological level of $5,500 was also surpassed less than three weeks after Bitcoin broke the $5,000 mark.

The Golden Cross theory holds credibility among analysts in the cryptocurrency realm as it infers that the coin’s average price is above its 200-day equivalent. For the first time in over a year, the cryptocurrency market has seen its 50-day MA move above the 200-day MA, which according to many is a sign of a bullish market.

On the opposing side of the Golden Cross indicator is the Death Cross, where two indicators cross over into a bearish market i.e. the 200-day MA moves above the 50-day MA. The Death Cross manifested in April 2018, after the prices went into a free fall following the December 2017 high.

In April 2018, BTC was priced at just over $7,000, following which it lost more than 50 percent of its price by the end of the year. The price of the king coin has recovered exceedingly well in 2019 however, winning back almost 50 percent of its lost value.

Many analysts, including Greenspan, agree that the crossing of the two moving averages is a clear testament to the return of the bull market. Although he didn’t quite use those words, Greenspan tweeted,

“Ladies & Gents… The Golden Cross!
Bitcoin’s 50-day moving average (gold) crossing above her 200-day moving average (blue). 📈
This is yet another sign that we’re back in a🐂market. 🚀🌛”

However, in an exclusive interview with AMBCrypto last week, Greenspan had stated that the Golden Cross theory is a “lagging indicator,” as the Death Cross was last seen in April 2018, months after the market took a bearish turn.



In his view, the 200-day moving average is the key indicator. On April 2, Bitcoin broke this mark for the first time since March 2018, by recording a massive 17 percent daily gain and rising above $5,000.

Based on historic price changes with reference to the Golden Cross, the last time the 50-day MA soared above the 200-day MA, price of Bitcoin rose by over 8000 percent from $246 in October 2015 to almost $20,000 in December 2017. Given past market movements, the current market scenario, and the optimism in the air, the Golden Cross may just have initiated the Bitcoin bull market.





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