After a solid show over the last weekend, the world’s largest cryptocurrency Bitcoin (BTC) has slipped under $50,000 once again. As of press time, BTC is trading 1.5% down at $49,331 and a market cap of $927.2 billion.
On the monthly charts, Bitcoin (BTC) is still trading at over 45% gains. However, just as Bitcoin (BTC) flirts around $50,000 levels, here’s what analysts think investors should be doing.
Speaking to CNBC’s “Trading Nation” on Monday, August 23, Bill Baruch, president of Blue Line Capital said that he would be cautious and making any fresh entry right now. “I think it needs to be in your portfolio, but is $50,000 the place to be buying it? I wouldn’t chase it,” he added.
Baruch further acknowledged that he continues to hold Bitcoin (BTC) but has started to trim his stake as the BTC price bounced back to $45,000 levels. He explains that the $45K benchmark serves as a retracement from the June low of $29K and the April highs of $64K. Thus, this level also serves as the 200-day moving average for the world’s largest crypto. Baruch said:
Bitcoin (BTC) On-Chain Data
As Baruch suggests, we need to be careful at this point. As the BTC price was soaring over the last week, nearly 30K Bitcoins moved on to exchanges.
However, just as the BTC price crosses $50,000 levels this time, the trends of accumulation have changed when it surpassed $50K back in February. Earlier in Feb, when BTC moved past the $50K benchmark, fewer and fewer people were accumulating. But this time, the accumulation is strong.
Another positive data is that the BTC hash rate has been recovering. This hash rate recovery usually follows the surge in price and surge in demand. Addressing his long-term view, John Petrides, portfolio manager at Tocqueville Asset Management, said:
“If you put your long-term investment hat on, there are two ways to look at this space — one is cryptocurrency the asset class and then the second one is an investment in the blockchain. For our team specifically, from a long-term theme perspective, we think that blockchain has a lot of value to it”.