Gareth Soloway calls for another leg down for bitcoin which could take it to the depths of $12,000.
Gareth Soloway is the Chief Market Strategist for IntheMoneyStocks.com, and he correctly called Bitcoin’s fall from its highs last year, giving a target of $20,000.
In a recent interview with David Lin of Kitco, Soloway reiterated his view that bitcoin has a lot further to fall. He believes that the number one cryptocurrency will go down to reconfirm the $17,000 level, and then he expects it to drop a lot further and hit his target of $12,000 or $13,000.
When Lin surmised that another drop of 50% wasn’t such a big one when bitcoin had already dropped around 75%, Soloway agreed saying:
“From the drop from $69,000 to $21,000 and change, if it’s only got another really about $9,000 to go, that’s not that crazy I agree.”
Lin quoted Mike Novogratz, CEO of Galaxy, as saying a couple of weeks ago that long-term, he expected bitcoin to reach at least $500,000. Soloway affirmed that he thought Novogratz was correct and that he had the same long-term view.
He just thought that in the short term bitcoin would probably go a lot lower, and that this would equate with the normal 85% bear market correction which bitcoin usually came down to as per other historic bear market cycles.
“This is the key right, you have to be able to weather the emotional storm, because I know a lot of investors out there. They might buy in at $22,000 or $21,000, and when they’re down 40% at $12,000, they might panic and unload because you’re going to hear a lot of negativity out there, and you have to be able to control that and shut it out, and then you’re ok to do that, but if you’re someone who’s very emotional and you’re going to exit the trade at that point, and then it goes to $50,000 and $100,000, that’s not a good scenario for you to be in.”
Asked whether the Ethereum merge could cause crypto to diverge from the general stock market downtrend, Soloway said that he didn’t think so as he believed ethereum was still a risk asset. He stated that he was in the camp that believed that crypto would sell off with the stock market, and that there was a “big downside move coming later this year” and that would be the catalyst to take bitcoin down to $12,000.
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