Group Co.
QUICK TAKE: Xena Exchanges’ Plavnik on Bitcoin Gains
Traders Magazine Online News, May 22, 2019
Bitcoin is back.
But why?
Is it interest rate uncertainty? Volatility? Declining outlook for corporate earnings, The US/China trade war? Trouble with Iran?
Julie Plavnik CBDO at Xena Exchange spoke with Traders Magazine on the eponymous cryptocurrency’s rebound in price and recent move higher.
“We used the knife-correlation approach back in December 2018 to identify a $3 billion-dollar group of wallets which had an extremely highly-informed rating factor. This group completed large purchases, for sums of US$3700 and above, - and thus we assumed there would be attempts at raising the rate,” PLavnik said, quoting trades on the exchange. “We next all saw a huge purchase, for US$ 100-million, at the low-liquidity peak – which hiked the rate from $3,700 to $4,700, then rose further to $5000 after some help from traders. The climb from $7,000 to $8.000 was also a sharp one – as if someone was trying to fix the market.”
So, how do traders now handle the higher prices?
“Our belief is that the baseline scenario for Bitcoin will be slow growth,” Plavnik said. “It's not profitable for holders of major Bitcoin sums worth billions of USD, so we expect a continuance of such unexpected purchases to continue throughout the year. Currently, of course, the rate is no longer low, and some corrections could be possible – but by the year-end the rate may turn out to be much higher, if everything continues at the same level of activity.”
Given the outlook for sow growth in the coming months, Plavnik remains bullish on the cryptocurrency to yet move even higher over the summer.
“If the hike receives market support once again, we could see Bitcoin rising higher still,” she began. “However, such sharp rises rarely occur without corrections. The best approach is to choose a moment during the day, and come in with either short stops or trailing stops – you could use a special trailing zero-loss attempt stop by using the market barometer which we issued recently.”
For more information on related topics, visit the following channels:
Comments (0)