After the massive recent Bitcoin rally in 2020, CNBC analyst Brian Kelly says anyone who is now looking to buy Bitcoin should consider slowing their roll.
The online publication the Daily Hodl noted that the CEO of the digital currency investment firm BKCM says he still thinks the price of Bitcoin will definitely surge a lot in the long run.
Kelly said that people should be prepared for a pullback
On the other hand, he also said that anyone looking to enter the market now should be prepared for a pullback to $12,000.
“Let’s be clear; I’m still a Bitcoin bull. In the long run, I’m going to be a bull for the next decade. But, if I take off the long-term investor hat and put on my trader hat, there’s a couple of things out there that I’m starting to see that are signs of a top. More than any other asset class in the world, Bitcoin is subject to fear of missing out (FOMO). We’re starting to see speculative coins, coins that are under $5, start to go up 30% or 40% in a day. Those are the types of things that happen at short to medium-term tops,” he said.
Giddy up for Bitcoin as it rode past the $19K mark today for the first time since 2017. But @BKBrianKelly says you might want to hold your horses with the trade. Here’s why. pic.twitter.com/rc2ZKsBsEQ
— CNBC’s Fast Money (@CNBCFastMoney) November 24, 2020
He also noted that “When I look at the address growth, the market’s pricing it at about 25% address gross over the next 30 days. Whenever you get that big of an address growth implied, that’s a caution sign. The last one is that we’re starting to see retail come into this market and you’re starting to see the interest rates that it charges on margin going much higher.”
He also noted that earlier this year, he said that BTC could surge to $50k in a year. He said that “if you’re buying Bitcoin at $19,000, you need to be prepared that it drops to $12,000 before it goes to $50,000. ”
He concluded by saying that caution is required on an asset that’s up almost 200% in a year.