Worried that bitcoin was due a pullback? No need to stress. Our best contrarian indicator, CNBC, is flashing bullish.
After any parabolic increase like bitcoin has seen over the past couple of weeks, you’d expect a pullback. Right? I mean, the market is crazy overbought, RSI is bumping against the ceiling, and there’s no way that any trader could think buying at this point was smart. Surely?
Well, just hold on. Because one of our favourite indicators says otherwise.
There’s smart money and there’s dumb money, and CNBC definitely caters to the latter. All through the bull market, this channel figured it would get in on the action, with regular updates about the price of bitcoin and other major cryptos. Quantity mattered. Quality did not.
CNBC has featured plenty of analysts on over the last couple of years, and they have proven decidedly mediocre. In fact, it’s been worse than that. CNBC has developed into a kind of in-joke in the crypto world, because they get it wrong so much of the time. They’re the TV equivalent of a noob who just got into crypto and suffers from the wild swings of emotion than result from the price moving up or down a few hundred dollars.
The long and the short of it is that CNBC offers really, really poor trading advice. If you’d done the opposite of what CNBC suggested, you’d be a winning trader. Now, CNBC have warned of a move back to $7,000.
Has Bitcoin come too far, too fast? @AnthonyGriz says it could be time for a move back to $7,000
Now, if it was anyone else, we’d agree: this scenario does look likely. A significant drop back towards major support – $6,800, say, or even lower – is totally reasonable after the massive price appreciation we’ve seen in the last fortnight.
But here we have a dilemma. Because an irresistible force is meeting an immovable object. Either:
- CNBC is right – for the first time, they’re actually talking sense
- Bitcoin is going to shrug off the bearish technicals and smash through resistance to $9,000+
Either could be correct. It’s possible that CNBC is finally not wrong about bitcoin. But do we really think so?
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