Categories: Bitcoin Business

CNBC Analyst Explains Why He is Bearish on Bitcoin

Click here to view original web page at





Earlier this week CNBC Fast Money host Brian Kelly said he is short-term bearish on Bitcoin price based on a drop in daily active addresses. Does this mean BTC will drop lower?

Bitcoin bobs and weaves

Bitcoin has spent the last week bobbing and weaving at the $10K line. $10,350 stood as a stiff resistance level for nearly 3 days, then when overcome, $10,500 delivered the uppercut that smashed BTC back to a former resistance turned soft-support.

Unsurprisingly, Bitcoin price failed to find firm footing at $10,350 and overnight the digital-asset tripped and fell below $10k again.

At the time of writing, BTC is mustering up strength and attempting to have another go at the resistance level at $10,200 but the lack of bull volume calls the sincerity of this move into question.

Brian Kelly says, keep an eye on active addresses

Investor sentiment is growing increasingly bearish regarding Bitcoin price action and since the fall from $13,800 and repeated rejections in the $12k zone it seems a drop to low 9s and below is becoming a real possibility.

CNBC Fast Money host Brian Kelly seems to agree. Earlier this week Kelly said Bitcoin has been in this correction for a while and the lack of “supporting fundamentals” is why the digital asset has failed to retake $13,000.

Kelly explained that he assesses Bitcoin’s price action by keeping an eye on daily active addresses. Since June / July the 30 daily moving average for active daily addresses have dropped sharply.

BK says this metric is just as important as the daily and monthly active user rate for social media platforms.

He posits that this data supports his belief that Bitcoin’s price “got ahead of itself” and is cooling off after a high energy parabolic run from $4,000 to $13,800.

With this said, Brian believes that there will be a chance for investors to buy Bitcoin as what he describes as a “generational buy” but he doesn’t consider the current price point a bargain.

When asked to elaborate on this “generational buy”, Kelly said:

Number 1 we will see the price going down and active addresses going up. That’s what we saw in December and January. We saw the price continuing to crash down and active the activity on the network was really increasing.

Second thing is sentiment, in terms of does everyone think Bitcoin’s dead, again? When people start saying that then I’ll get real interested.

But what if this time it’s different?

When asked whether or not things could turn out differently this time, Kelly conceded that the growing number of institutional investors trading Bitcoin derivatives and these institution’s don’t necessarily represent a ‘spot address’ like a bank account.

This means that Bitcoin’s price action could spike in either direction without there being a noticeable difference in daily active addresses. This could impact Bitcoin’s future price action.

Do you think Brian Kelly’s tactic of monitoring active Bitcoin addresses is accurate? Share your thoughts in the comments below!

Images from Shutterstock, Twitter: @CNBCFastMoney


Send Share Earlier this week CNBC Fast Money host Brian Kelly said he is short-term bearish on Bitcoin price based on a drop […]


Illuminati, Mason, Anonymous I'll never tell. I can tell you this, global power is shifting and those who have the new intelligence are working to acquire this new force. You matter naught except to yourself, therefore prepare for the least expected and make your place in the new world order.

Disqus Comments Loading...
Published by

Recent Posts

Everyone’s Worst Fears About EOS Are Proving True

The Takeaway: EOS is the world’s seventh-largest blockchain by market cap, with a value topping $3 billion since February 2019.… Read More

3 hours ago

Street Artist Makes $12,000 in Bitcoin Donations

A French street artist best known for painting lady liberty leading the yellow vests has stated he has received more… Read More

4 hours ago

Wave Financial Launches World-First Bitcoin Yield Fund: Wave BTC Income & Growth Digital Fund

LOS ANGELES, Sept. 19, 2019 /PRNewswire/ -- Wave Financial LLC (Wave), a leading asset management firm focused on digital assets,… Read More

4 hours ago

Nigerian man returns bitcoins worth $80,000

Keith Mali Chung returned Bitcoins worth $80,000 mistakenly transferred to him. A Nigerian man who found $80,000 dollar's worth of… Read More

4 hours ago

Bitcoin Surrenders Post Fed Rate Cut; Pullback Awaited

Bitcoin slipped below $10,000 on Thursday after the Federal Reserve cut benchmark lending rates by 25 basis points.The BTC/USD instrument… Read More

4 hours ago

Bitcoin Hashrate Hits All-time High as Price Dwindles

The benchmark metric of miners confidence in the Bitcoin network established its all-time high on Thursday.Hashrate, which reflects the processing… Read More

4 hours ago

This website uses cookies. We use these cookies to collect data about your interaction with our website for the purpose of continuously improving your experience with our site. For more information we encourage you to read our privacy policy.

Read More