Bitcoin Bull run is on the cards says Brian Kelly, CNBC-analyst, as he reviewed the rebound the coin has posted in the past 24-hours. Nearly all of the assets posted gains higher than 6-7% with prices of bitcoin breaching $6,400 and looked to head upwards. However, the upstart was altcoin Nano as it pushed ahead by over 25% and more.
Kelly believes that the prices for the bitcoin are headed upwards and that it has been quite a “wild ride” in the markets in terms of prices for these currencies.
Stats indicate futures expiry
He attributes the current markup in prices as a pattern similar to previous events around expiry dates of futures. Apparently the latest price-down in bitcoin was due to the approaching expiry date for CBoE-based Bitcoin features.
According to statistics received by CNBC from statistician Justin Stanislaw bitcoin shows a sharp downfall during the days running up to the expiry date and 10% upward movement in the week after the expiry of the futures.
Any expiry expected is similar in its occurrence as Kelly noted that the expiry in April of the futures had also noted a 20% gain in just a week. Thus, the pattern appears to be set for crypto-centric fund for positive bouts price action in the next few days.
Responding to queries on ‘other cryptocurrencies’ bottoming-out along with Bitcoin, Kelly said that “They (altcoins) are still quite correlated (with Bitcoin). Over the last 60 days or so, Bitcoin has really been the leader — a lot of that had to do with the speculation about an ETF.
But what you did see today is stuff like Ethereum almost 10% off yesterday’s lows, stuff like Stellar Lumens — still holding up quite well. So yes, if you get a 10 or 15 percent run on Bitcoin on a short squeeze, it should bring everything else back up.”
Bull run
In his analysis, Bitcoin is likely to have a bull run and will also receive majority altcoins. At the same time there will be variance in terms of bearish or bullish direction. On the other hand trader Dan Nathan was focused on ‘petering out’ of the capitulation phase. Hence, the question is about cryptocurrency bull heading towards $5,900 and will also prove that the level of support will be in terms of sell-off, as it is likely to continue.
The expectation is for the currency to head towards a quick run on the bull side. It appears that Kelly has a focused on the statistical details to predict the upward turn, which is bullish in its direction. Wednesday’s price rise is expected to head towards classic bull trap for optimists who are convinced in terms of the beginning of upward rise in crypto bears.
Futures expiry in April is the premise on which the bitcoin is about set up on the bullish trend. Kelly is a permabull about the bitcoin and has explained that it is a short squeeze for the coin as it has covered losses and begun a “potential” reversal in trend for the cryptocurrency.
