In the world of cryptocurrencies, just a few months can mean a whole difference between a huge plus and a baffling minus. That’s clearly demonstrated in the way Arthur Hayes’ opinions on Bitcoin have been fluctuating of late.
A few months ago, Arthur suggested that Bitcoin had the power and support to reach a cool $50k by the end of 2018. However, the market hasn’t exactly granted Arthur’s wishes, and now he has changed tack. Now, Arthur Hayes thinks that given the recent tough struggles between bulls and bears in the crypto market, Bitcoin could as well drop to $2k before the bulls take over again. That’s a pretty strong statement coming from the CEO of BitMEX.
Nuclear Bear Market
Earlier in the week, Arthur, who happens to be a former Citigroup trader, was quoted as saying that Bitcoin could actually be on a down-spiral for the next 18 months, something that doesn’t really sound so optimistic. With such a statement, Arthur was trying to draw a similarity between the current market situation and the strongly bearish trend of 2014-2015.
Most Crypto Analysts and chart-watchers tend to pronounce a bear market the moment a cryptocurrency’s price falls lower than its cyclical range. But Arthur Hayes has another opinion on that.
According to him, a bear market should be pronounced when the price dips below the 200-DMA (Day Moving Average).
With respect to this outlook, it appears that Bitcoin entered the bear space the moment it fell below $9,152.
Going further, Arthur opines that looking at other crypto charts from the past, it’s shown that a lot of the crypto prices that fell below their 200-DMA actually went on to experience a further dip, sometimes way low.
In that sense, he suggests that Bitcoin could be headed for the same trip down the chart. He predicts a fall down to around $2,000 to $3,000 before the bulls can fight off the bears.
Bitcoin Needs Volatility
Talking about the price fluctuation in regard to the top crypto, Arthur Hayes believes that this kind of market uncertainty is actually needed. Bitcoin needs this volatility to keep the flame on and maintain its status in the market.