Hi, I'm Molly Jane, a managing editor here at Cointelegraph and I'm talking to Mati Greenspan about what's happening this week in the markets My first question for you about the markets and amid this week is, so after another rally, do you think that there is bull fatigue and you think we could be heading for another correction? I think we're kind of seeing it today, but I want, of course, your stance on it
It's an excellent question, I guess that's the million dollar question that everybody wants to know, right So, I think that before we've laid out kind of two bullish scenarios, number one is an extremely aggressive scenario where we have this rising trend line, you can see it here on the chart This is an ascending wedge pattern, if you use the psychological resistance at $9,000 and you can see we are coming into some sort of a consolidation at the top So this is the aggressive bullish scenario And then there is a less aggressive, a conservative bullish scenario where you draw your rising trend line a little bit more conservatively
And in this case there is definitely a possibility of coming back down, even testing $6,500 or $7,000 levels, if this does play out So those are my two kind of bullish scenarios obviously Past performance is not an indication of future results and anything can really happen So do you think that bitcoin then is trading in sort of a rising wedge pattern, and if so does this signal to you bearish trends? It is, I mean those are both kind of rising wedge patterns that I mentioned What's interesting to note is that the volumes across exchanges and, in general, even on the Bitcoin blockchain, the futures markets and all the derivatives of bitcoin, everything is kind of dissipating
And we saw some incredible all-time highs in mid-May, as far as volumes are concerned The volumes are still very elevated, transactions on the Bitcoin blockchain are near the all-time highs, but we can see that they're coming down a little bit as things relax as we enter into this consolidation zone that we're in at the moment So if we get a breakdown in either direction, I mean the excitement can come flooding back in, but we'll see how it plays out So last week bitcoin's price crashed 11% in just a matter of hours on Bitstamp Is this kind of thing that people should worry about? So it depends what kind of trader you are
I mean if you're a short term trader with very high leverage, yeah, it's always good to be cautious, because those type of things can certainly stop you out For long term hodlers I would say that it's not, because with that flash crash we could see that, yes, there was a large player who sold off some of his holdings, but the market quickly returned to the previous levels, so this is the type of dynamic that we get in the low liquid environment, and low liquidity is really the one of the hallmarks of bitcoin's price action Interesting, so there was a comment this week from venture capitalist Jason Calacanis that bitcoin will likely be replaced by new technology and could eventually trade to zero I mean these kind of comments are said all the time, but could you speak about this one Of course, I mean eventually yes, why not
What's important to remember is that the bitcoin movement is not really about technology Bitcoin was invented in 2009, more than 10 years ago, and certainly there are other cryptos and other digital assets that are much quicker than bitcoin are today, technologically superior Bitcoin doesn't derive its value from the technology, Bitcoin is a movement, it's a network, it derives its value from the network itself from the people that believe in it So, yes, I believe that technology advances very quickly, but what we're seeing with Bitcoin is not necessarily about technology, it's about the movement that's being enabled by the technology Got it, I mean you can separate these two things then
Back to the prices So what can you tell us about the recent Bitcoin Satoshi Vision success, because even today it's one of the only coins that's up Oh, you're talking about Bitcoin Cash SV? So Bitcoin SV, I don't know if you remember there was a "Delist SV" campaign that went on a while ago, Binance delisted it, here in eToro we never listed Bitcoin SV to begin with, we followed the other Bitcoin Cash hard fork the ABC Generally speaking, Satoshi Nakamoto when he kind of spoke about hard forks, he said it's very dangerous to follow a minority fork, because it can be unstable Now, because of the "Delist SV" campaign, liquidity on Bitcoin Cash SV is very limited at the moment, and what we can see is that it's kind of trading like a penny stock
So any and all volumes can move the price immensely and that can work out in both directions So let's say the supporters of Bitcoin Cash SV come in with even a small buying order, let's say $50,000 or $100,000, and they can move the price immensely, but remember what they have in their war chest at the moment, so if any one of them decides to sell off their holdings, the price could crash just as quickly Interesting, I didn't think about it that way It's a thin market you would say Extremely thin liquidity
So my last question then, not about bitcoin SV, just in general, but do you think that it overall is wise to be bullish right now for the crypto markets? It depends who you are and how your portfolio is made up For myself, at the moment, I'm holding about 13% in crypto of my entire portfolio and you can see it on my eToro account And the thing is that, at the moment I have 15% in crypto and around when Bitcoin hit $8,000, I was taking some of the profits off the table Cryptos are very high risk asset class, so to hold too much crypto – it can be extremely risky The best strategy for any investor is to think about diversification, think about different currencies, commodities, stocks, ETFs that you feel have a long term potential and kind of diversify yourself among them, that way you can manage the risk that you're taking
So within that, is it smart to be bullish on crypto? Yeah, because it has a very good chance of seeing another kind of parabolic rise, we've seen bitcoin do that several times in the past and it certainly can do it again And if you're only taking a small amount of risk, that type of rise, if it should play out, can quadruple or quintuple your overall profits and your entire portfolio even with a very small exposure Got it That was my last question, so thank you for speaking with us as always Thank you very much for having me, Molly, and have an excellent day
So that was me, Molly Jane, talking with Mati Greenspan about what's going on in this week's markets Be sure to check out our Hodler's Digest that was published just today This episode is sponsored by Trade Santa Trade Santa is a cloud-based trading bot Set it up in less than 2 minutes, trade multiple pairs, choose between long and short strategies, use tech analysis indicators, and see your results in real-time
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