As Bitcoin price continues to decline, senior analyst Todd Gordon shares his take on the current market conditions – and where the price of Bitcoin will go from here.
Todd Gordon, founder of TradingAnalysis.com, appeared on CNBC’s Stock Draft on June 22 during which he predicted that Bitcoin (BTC) will fall to $4000 before experiencing a rebound that will take it to over $10,000 by 2019.
“Very Technical Market”
Speaking by phone with CNBC’s Tyler Mathisen, Melissa Lee, and Michelle Caruso-Cabrera, Gordon explained that he expects Bitcoin’s price to continue dropping in the short term, shaking off a lot of long positions in the process. He also said that he believes that “technicals will kick in” around the $4,000 mark, essentially driving the price above $10,000 by 2019.
Gordon also noted that this is a “very technical market” and, as such, it is possible to recover certain losses soon by simply accounting for market technicals. He also said that Bitcoin’s price is experiencing one of its lowest high to low ranges, currently at 17 percent:
There were times when it was 20, 30, 40 percent [per] week so, if I’m down 30 percent right now in Bitcoin, that’s nothing, I can make that up in two weeks.
A “Beautiful Uptrend”
Gordon pointed to the substantial market volatility as the main reason for the current decline. However, he also touched on the fact that, historically, the recent correction is “inconsequential”, given the gains Bitcoin saw since 2015, which he cites as a “beautiful uptrend.”
He also stressed that investors shouldn’t look at Bitcoin using linear – or arithmetic – chart, but rather a semi-log approach should be used. While a bit more technical than traditional charts, Gordon explained that semi-log charts not only tend to be more accurate in Bitcoin’s case, but it would equalize the percent changes as well.
Gordon isn’t alone in this opinion. Earlier this month, Changpeng Zhao, CEO of Binance, the world’s second largest cryptocurrency exchange in terms of trading volume, also emphasized that Bitcoin price hasn’t been linear and flat throughout the years.
At the time of this writing, Bitcoin is trading at $5,931.75, marking a 3.33 percent decline over the last 24 hours according to CoinMarketCap.