According to the Trading Expert, While Gold Is Shining, That Level Will Come in Bitcoin!
While most assets in the cryptocurrency market continue to struggle with the aftershocks of the collapse of the FTX, Bitcoin (BTC) persistently continues to remain below the critical resistance at $ 16,600. According to experienced trading expert Gareth Soloway, the largest crypto currency may fall further while the precious metal gold shines.
Gareth Soloway, chief market strategist at INTHEMONEYSTOCKS, said in an interview with Kerry Stevenson of Small Caps on November 26 that Bitcoin could fall to as low as $ 9 thousand in 2023, but he is not worried about the long-term performance of the largest cryptocurrency by market capitalization.
Drawing attention to the performance of the S&P500 after the collapse of Lehman Brothers and recalling that the stock market fell by about 40-45 percent in the 5-6 months following the collapse, Soloway uses the same formula to calculate that Bitcoin could fall up to 9 thousand dollars in the months following the collapse of FTX. However, the trading expert who admitted that he wants to hold BTC for the longer term, so he will be in a more ‘hodl’ mode, “So when we get here, I will have received the amount that I think is one sixth of the amount that I hope to hold in my hands for the long term.” he explains it in his words. Soloway explained why she would act this way with the following words:
If I’m wrong, I don’t want to stay here without Bitcoin. That’s why I’m willing to buy a little here […] and the idea is that by adding to my exact position with the dollar cost average, I will reduce the risk of missing the opportunity to trade, while at the same time reducing the risk if it goes to 9 thousand dollars.
According to the market strategist, this strategy is “a way to adjust the risk and manage the process,” and for most people, taking a position right now is a really smart investment decision.
The Gold Option Against the Uncertainty of Crypto Currencies
Although Soloway believes that Bitcoin could fall even lower, she expects a significant rise under the precious metal, which “has already made a great move” around the thousand 728 dollars and broke this level:
I love that we are trading above the bin 728 dollar level. As long as this continues, he expects a rise under it in the near term and in the long term. I’ve loved gold all year. I said that it would be the best performing asset between S&P and Bitcoin, and Decisively so in 2022.
Soloway believes that the same thing will happen in 2023, “But right now the situation is a little more complicated in Bitcoin, because when Bitcoin goes to the bottom, it becomes a little more difficult to think about it. Might June or May of 2023 be the time to hit the bottom, where will it be in December? So it’s a little more difficult, but I would still prefer that gold would choose while there is uncertainty in crypto currencies at the moment.” add did.
Currently, gold’s outstanding short-term performance is due to macro factors such as the weakening of the economy and the possibility that the Federal Reserve (Fed) will reduce interest rate increases as a result of which the US dollar will start to suffer.
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