Bitcoin (BTC) price is trading about 3% lower this week as it faces mild selling pressure, following a strong push higher in recent weeks.
BTC price could decline 50% in the short run, says Guggenheim CIO
Bitcoin price has corrected lower in the past two weeks as industry experts and analysts warn of an oversaturation in the buying interest. For instance, Guggenheim Global Chief Investment Officer (CIO) Scott Minerd said he remains bullish on Bitcoin in the long run but expects the cryptocurrency to face a major correction soon.
“Given the massive move we’ve had in bitcoin over the short run, things are very frothy, and I think we’re going to have to have a major correction in bitcoin,” Minerd told CNBC.
He adds that a pullback to $20,000 to $30,000 is a possibility, “which would be a 50% decline, but the interesting thing about bitcoin is we’ve seen these kinds of declines before,” Minerd said.
Still, he believes it’s part of “the normal evolution in what is a longer-term bull market,” and that Bitcoin would eventually hit $400,000 to $600,000 per unit.
Similarly, CEO of Galaxy Digital Mike Novogratz warned that the crypto market moved upwards too fast and a correction may be coming soon.
Ethereum breaks resistance against BTC
One of the possible reasons behind a somewhat depressed price action in Bitcoin this week is the fact that ETH price continues to gain against the world’s largest cryptocurrency. As seen below, ETH/BTC is up over 18% this week to print the highest levels seen since August.
ETH/BTC weekly chart (TradingView)
The pair is now working its way towards the next resistance line at 0.5350. This week’s move higher pushed the pair above the 200-WMA at 0.41, a level that will now act as support. A weekly close above the previous multi-year high at 0.46 would boost investors looking to buy Ethereum in the short-term.
Guggenheim CIO Scott Minerd said things are “very frothy” around Bitcoin and that the cryptocurrency could face a major correction soon, however, he remained bullish on the BTC in the long term. On the other hand, Ethereum price has broken out against BTC to yield a new record high in ETH/USD price.
The post Here’s why Bitcoin (BTC) price is struggling this week as Ethereum (ETH) hits new highs appeared first on Invezz.