CNBC Analyst Predicts Bitcoin Bounce Back Based Purely on Market Tacticals

According to CNBC Futures Now Trader Jim Lurio, as the critical support level for Bitcoin is $6,000, it is most likely that the top cryptocurrency will trade above $6,800 level.

On the show, Jim said that market tactics are the key to accurately predicting the price trend of Bitcoin on any meaningful level. According to Lurio, Bitcoin or any other cryptocurrency does not have any fundamentals on which its pricing is based. In this case market, tactical can be a useful way to [predict the future trends of Bitcoin and other cryptocurrencies. A trading technique called Stop-in is very useful in predicting the price trend of Bitcoin. Lack of fundamental means it is difficult to price Bitcoin. For Bitcoin, price discovery is happening in the market and it looks like $6,000 is becoming a crucial support level for Bitcoin. In spite of the hack at Japanese exchange Bitcoin is steadily moving towards $6,500.

He made the comment during trading on the floor of the Chicago Mercantile Exchange ((CME) ahead of the close of the latest CBOE bitcoin futures contract. According to Jim, $6,000 is a major level for the Bitcoin. If you look at the chart, you will find whenever Bitcoin reach the level of $6,000 it gets rejected again and again. If the Bitcoin is trading at $6,460 then Stop-in technique can be used.  At this time the trader must wait for a bit too strong and should jump in at the right time. At the level of $6,460, a call to stop in with the target of $6,860 can be made. Currently, Bitcoin is trading at around $6,750, if in future Bitcoin retraces to trade below $6,210 then we can do the entire thing again.

Jim Luro stated that “$6,000 is a big deal. I don’t know why it’s a big deal but if you look at the charts, it’s clearly something. Every time it gets there, it gets rejected again. If it trades at $6,460, about $60 above where it is now, we do this technique a lot called the stop in. we wait for a little bit of strength and try to jump in at the right time.

Anthony Grisanti is also agreed with Jim’s assessment. According to Anthony, “when you do not have anything like fundamental to the trade-off, you trade off of tactical.”