Bitcoin’s woes could be far from over according to a renowned technical analyst at Renaissance Macro Research, CNBC reports.
Jeff deGraaf, the firm’s head of technical research has revealed he’s bearish on bitcoin’s future, saying he would short the currency if it managed to break through its “key year-to-date support level.”
In a note sent to clients on Thursday, deGraaf said "Parabolic moves are notoriously dangerous for short‐sellers … Usually a top develops that often appears as a descending triangle over months, with reduced volatility and little [fanfare]. Once the top is complete on the support violation, the security in question can often be considered permanently impaired or even 'game‐over'. We are of course referencing Bitcoin as exhibit 'A' in today's market."
DeGraaf has proven himself to be an excellent chart technician, and has been highly respected in his field for the last twenty years. Institutional Investor Magazine has ranked him as the No.1 technical analyst for more than 10 years. He also became a member of Institutional Investor’s Research Hall of Fame in 2014.
Bitcoin has shown some recovery today, currently sitting at around $6,500. It managed to break the $6,800 mark last week to reach over $7,00, but shortly after it sunk back to $6,000.