March 8, 2021

A Crypto Investor

Just another Crypto Guys Blog

2 counterarguments for CNBC’s Brian Kelly who sees a $19K Bitcoin top

CNBC Fast Money trader Brian Kelly sees three potential signs of a price top as Bitcoin (BTC) hits $19,000. Both fundamental and technical factors suggest a pullback could be imminent as the rally becomes overextended.

BTC/USDT 1-hour chart (Binance). Source: TradingView.com

Kelly named three reasons why a short-term Bitcoin pullback might occur. The reasons were the pump of altcoins, overpriced address growth and high funding rates. On Nov. 25, he said on CNBC:

“I’m still a Bitcoin bull. In the long run, I’m going to be a bull for the next decade. But, if I take off the long-term investor hat and put on my short-term hedge fund trader hat, there are a couple of things out there that I’m starting to see are signs of a top.”

Altcoin pump is shaking things up

As Cointelegraph reported, alternative cryptocurrencies, or altcoins, such as XRP and Stellar (XLM) have surged steeply in recent months. Their uptrends were reminiscent of the January 2018 altcoin mania, when BTC started to pull back and altcoins rallied.