The former Bitcoin short film seller paints a bearish image
Recently, Mark Dow, an eminent hedge fund manager and skilled chartist, went on Twitter on Tuesday to make an unexpected statement. In a tweet that apparently teases Crypto's zealous bulls, Dow wrote that he would greet his short Bitcoin (BTC), which he presumably opened during the peak of assets in late 2017.
In a telephone interview with Bloomberg, the apparent Bitcoin bear made it clear that his tweet was not a joke, adding that he was "done" with the position. Speaking at the outlet, Dow explained that he "does not want to try to ride this thing to zero", potentially indicating that he sees some semblance of value in BTC. Comparing his anti-BTC prediction to a lemon, he declared:
"I do not want to try to squeeze more from the lemon, I do not want to think about it, it seemed like the right time."
The current head of a Southern California family office has therefore explained that he has already made profits twice this year, making the coverage of his controversial polite more than logical, especially from a risk management point of view. .
A few weeks later, Dow resumed Twitter, this time to paint a bearish picture for BTC's prospects, particularly from a technical analysis perspective. The American economist recently wrote that the BTC chart remains "beautiful", but noted that if the asset can not violate the $ 5,000 or $ 6,000 price levels in a rebound, the "cyberbull" will be in a moment hard.
Dow added that if the BTC breaks below $ 3,200, a long-term support line as expected in the chart below, "even the HODELERs need GTFOs", probably accentuating the importance of this support line.
Still a nice graphic. If the bitcoin can not bounce at 5k-6k early, it's really a bad sign for cyberbulls. And if you break through the yellow line anywhere, even the HODLERs need GTFOs. $ BTC $ XBT pic.twitter.com/FqqyzE1mhb
– Dow (@mark_dow) December 27, 2018
Maybe not … Foundations of Bitcoin still booming
Although the Dow call should not be completely ignored, its use of the analysis of traditional cryptographic markets has thrown a bit for a cycle. A Twitter user, referring to the Moniker InvestmentWizard, noted that the fundamentals of Bitcoin are stronger than ever, adding that even if BTC were to break through the "scary yellow line", the end would not be close to the flagship cryptocurrency.
This is not an isolated, distant perspective, in fact. Armin Van Bitcoin, a pseudonym zealot, but a prominent cryptocurrency, recently said that Bitcoin has undergone a series of developments that have made 2018 the most successful year of the project.
Bitcoin saw the release of the 0.16.0 and 0.17.0 versions of its core software, the first of which helped SegWit arrive in the mainstream. Blockstream has made great strides, allowing consumers offline across the world to access the Bitcoin blockchain via a series of satellites. And even though the hashrate of the network has stumbled recently, it remains up 400% year-on-year, accentuating the fact that miners continue to see a value in BTC. The SegWit protocol also saw an increase in adoption, from 10% to 40% from January to today.
Also, there is a mass of traders who believe that BTC could break below $ 3000, but still have a positive future ahead of them. Anthony Pompliano, for example, recently stated that BTC could re-enter the aforementioned level, but remains bullish on the cryptocurrency. He explained that in the end, when cryptocurrencies are reduced, they are driven by mathematics and software, rather than by wicked individuals who can plague traditional industries. This is, of course, the underlying value proposition of crypto, and the fundamental narrative of this sector since its early days, or blocks if you want.
Title Image Courtesy of Ben O & Sullivan on Unsplash