New York Mercantile Exchange Bitcoin Trader: BTC Price to $7,000 Likely on CNBC Trade Alert Show
Anthony Grisanti Thinks Bitcoin Will Pull Back To $7,000
A trader from New York Mercantile Exchange (NYMEX) Anthony Grisanti thinks that Bitcoin will most likely pull back to $7,000 mark after highs of about $8,500. Seeing today’s price trends, it looks like his price prediction will most likely come true.
He said on CNBC:
“If we start getting some profit-taking in this market, it will fill in that gap, but that’s actually very healthy for markets going forward.”
This is in reference to one of this week’s CME trading sessions, during which there was a massive gap due to the asset’s volatility. Just a day earlier, one of Grisanti’s former guests also suggested that Bitcoin was topping, noting that if he was to trade the asset, he would be short, and looked to take profits in the low-$7,000s.
He thinks that trading in the recent bull market mirrors what had happened in 2017.
“Over the past few days, the actual price has moved sharply over marginal cost. This divergence between actual and intrinsic values carries some echoes of the spike higher in late 2017, and at the time this divergence was resolved mostly by a reduction in actual prices.”
Anthony and the interviewer, each recommended a small allocation to bitcoin as a portfolio hedge. They talked about bitcoin like any other asset class. It was discussed in the same breath as gold and currencies without any scorn.
Grisanti advocated that traders allocate 5-10 percent of their portfolio to bitcoin.
“Usually in a portfolio, gold is about 5-10% of the portfolio so there’s nothing wrong with saying bitcoin couldn’t be 5-10% of a portfolio right now.”
Regarding the pullback towards $7,000, he said:
“The market’s had a nice run but I think it consolidates a little bit. I’m looking to sell at $8,000… and I’m looking for a move back down to $7,000 and I think consolidation for this market is actually very healthy, very good for it. I’ve noticed over the last few sessions that the volumes have come back down a little bit. And to me that means that the market does want to consolidate. That you’re not getting the buyers coming into the market with the strength that they did a couple of weeks ago.”