Boris Schlossberg says, Buying Bitcoin during its Price Fall is like trying to catch a falling knife
December 26, 2017 7:17 am
Bitcoin Price Prediction
Boris Schlossberg, a foreign exchange strategist at BK Asset Management, has warned the investors that the Bitcoin‘s price drop has attracted many people to mistakenly think the price fall represents a good buying opportunity.
Schlossberg warns the people not to fall victim to what he considers a false hope, Bitcoin has suffered once from its most dramatic falls on Friday, dropping low as $10,400.
Schlossberg said the dryness could continue for weeks and he himself would not buy bitcoin.
The volatility noted:
Schlossberg mentioned that Bitcoin has delighted investors this year, but the price swings of the past few days are demonstrating the bitcoin’s volatility.
“Continuing declines could affect bitcoin holdings and impact investor sentiment as traders liquidate their positions and those they hold in more traditional asset classes. Bitcoin could also be affected by less volatility in other capital markets in the coming days.”
He told $10,000 has developed as bitcoin’s new floor price, making it as marked a breakout three weeks ago when it floated around today’s level. According to Schlossberg, investing in bitcoin is like trying to catch a falling knife.
Many are Still Purchasing Bitcoin
As of early Monday afternoon, the vote was fairly even among 5,687 voters, with 52% saying they will not buy cryptocurrencies and 48% saying they will.
In May, Schlossberg called investing in bitcoin a way for investors to hedge their bets against market uncertainty. Schlossberg mentioned the difference between the bitcoin and gold, mentioning that bitcoin is being called the “new gold,” due to its ability to retain value over time.
Schlossberg is a co-founder of BKForex.com and has more than 20 years of financial market experience. He began his Wall Street more than 20 years ago at Drexel Burnham Lambert where he traded a variety of financial instruments, from equities and options to stock index futures.