Trader Says Bitcoin Can Surge Another 20%
JC O'Hara, chief market technician at MKM Partners believes Bitcoin could surge an additional 20 percent, according to CNBC.
He believes the combination of low-interest rates and a central bank willing to do anything for the economy make it the perfect investment. “You still have the S&P 500 trading under recent highs. The 10-year yield, more or less, has been sideways,” he said. “I’m actually looking at another asset class that I think will work tremendously well within this current environment, and that’s bitcoin.”
Cryptocurrencies have performed well around the election season.
“When we looked at a chart of bitcoin, we could see a very strong technical setup here that we believe is setting up for further upside,” he said. “It’s already breaking above the 2019 highs and from a technical perspective, there’s really not resistance until we have to go all the way back to December 2017,” O’Hara said. “So, in order to get to that level, we’re seeing another 20% higher for bitcoin. So, I think that’s the play here in the weeks to come.”
Quint Tatro, chief investment officer of Joule Financial, believes that Gold is the prime asset to own. “There’s no question that gold is ripe for further upside here,” Tatro said. “Ultimately, this is the area you want to be in to further capture that upside.”
Gold has also surged in recent months and has room to run if inflation numbers start to rise. “These are great plays and, again, I think that there’s further upside to play off of this inflation trade,” he said.
Tatro also acknowledged O'Hara's opinion on Bitcoin. “I think if this theme works based on what we’re talking about, gold will do exceptionally well and then the momentum horse will be bitcoin, there’s no question about it,” said Tatro, who owns some bitcoin.
“I can’t buy it for clients. I can’t yet justify that going into managed accounts or retirement portfolios,” he said. “I mean, it’s massively liquid. I’m not saying that there’s no liquidity. But it’s one of those asset classes where you wake up and the next day it could be down 20 or 30% and I just can’t accept that risk for clients here.”