BitMEX recently announced that its CEO Arthur Hayes would be using the Crypto Trader Digest medium to shed more light on some comments made earlier this week involving a prediction that the bear crypto market might last another 18-months.
Yet Another Retraction
A few days ago, Hayes suggested that bears could remain in control of the crypto market for another 18 months. This speculation was faced with criticism as it came from the same individual who projected that Bitcoin (BTC), which is currently standing a little above $6,300, would reach $50,000 by the end of 2018.
According to Hayes’s latest stunning prediction, it can be deduced that Bitcoin might fall ridiculously as low as $2,000 before reversing course. He further suggested that Bitcoin’s correction began when the cryptocurrency dropped below the 200-day moving average (MA) as opposed to when it dropped below its cyclical peak. Judging by this strategy, it would mean that Bitcoin entered correction territory when it crossed below $9,152 which would mark a 37% decline.
Arthur Hayes shared how he reached his assessment that the bear market could last much longer than people anticipate- the previous bear markets have pressed bitcoin price far below the 200-day MA and factoring in decline in bitcoin volume and volatility. In Friday’s edition of BitMEX Crypto Trader Digest, Hayes said that;
“A 75% fall from $9,152 takes us close to $2,000. $2,000 to $3,000 is my new sweet spot but don’t tell Michelle Lee just yet.”
The BitMEX CEO was also of the opinion that volatility is the catalyst to Bitcoin price action, this is contrary to the opinion held by most actors in the crypto sector. According to Hayes;
“Bitcoin requires volatility if it is ever to gain mainstream adoption [and] the price of bitcoin is the best and most transparent way to communicate the health of the ecosystem.”
Hayes added that with the absence of volatility, the price of bitcoin “will slowly leak lower [and] for those of us who lived through the 2014-2015 bear market, we all await that nasty ass candle that breaks the soul of the bulls.”
The CEO closed the ‘Bear Market Blues’ section with some rather sarcastic humor. He was of the opinion that trades should focus on calling the bottom” while enduring this period of sideways trading and low volatility. He sarcastically said when the bottom is in, “you probably will be too chicken to click that oh so scary Buy button.”