Cryptocurrency trader Ran Neu-Ner says that the price of Bitcoin may sink even lower in the coming days. Neu-Ner, who is host of CNBC Africa’s Crypto Trader, said that the virtual coin will keep going down, and is currently testing new lows, saying that $6250 is the next point. The trader said that if the prices goes under that, it is likely that $5,900 may be seen soon.
Neu-Ner was talking on Monday during CNBC’s Fast Money show said that although Bitcoin prices are set to go low, a key point to watch for is the $5,000 mark.
According to the trader, the majority of mining machines cost around $5000 and if the price of Bitcoin tumbles below the mark, it could have dire consequences for the mining industry. He explained:
At about $5,000, if we don’t get a turn up, then we may see a very different game in mining. “That’s where the miners look at this and go, ‘Is it actually worth keeping the machine on?
After an impressive recovery in the last couple of weeks, Bitcoin fell below $7000 on Sunday to close the day at $6647. The decline is the worst recorded in the last two months. Although the digital currency has so far gained some steam towards the $7000 mark, it is still far from its highest peak that was recorded in December last year of about $19500 – a price that attracted widespread interest in the coin.
Experts associate the weekend plunge with an announcement of a hack by a South Korean exchange over the weekend.
Majority expert traders and crypto industry analysts have tried to explain the volatility being witnessed in the crypto industry, with many blaming the uncertainties in regulations and constant changes by regulators who are wary of crypto.
However, Neu-Ner has a new perspective on why Bitcoin’s price is on a downward trajectory. The founder of OnChain Capita says that the crypto market is its nascent stages and price volatility is expected.
The crypto trader believes that what is happening in the market at the moment is bearish. He said,
We can’t break out of that downward pattern, we can’t break the 8,000 or 8,500 level with convincing volume,
Neu-Ner advises crypto investors to put their dollars on Bitcoin at the moment as they are likely to earn more in the future. He argues that now is the right time to buy Bitcoin if one is enthusiastic about the prospects of blockchain in the future.
The crypto guru had harsh words for short-term investors, advising them to try their luck in other sectors – but told those who have Bitcoin to hold the coin for about three to five years.
Image Credit: Deposit Photos
Do you think Bitcoin’s price will sink below $5000? Share with us in the comments section.