Bitcoin (BTC/USD) sellers are largely exhausted, according to crypto billionaire Mike Novogratz. Novogratz says that after a big sell-off three months ago, most people that wanted to sell Bitcoin have done so. He notes that the BTC price has largely been muted, allowing a potential takeoff once a “good story” builds up. So, is a bullish price reversal imminent?
Novogratz warns that Bitcoin and other cryptocurrencies will rally once the Fed pauses policy tightening. That’s because the selloff was directly a result of interest rate hikes in recent times. Apparently, the Galaxy Digital CEO expects the Fed to pause rate hikes that will invite a crypto bull rally. However, Novogratz tells investors to expect the bear market to last up to six months.
The comments by Novogratz come when caution is gripping crypto markets on high inflation. On Thursday, the US reported an 8.2% yearly increase in inflation for September. The gain was more than an expected 8.1%. The elevated prices raise the prospects of a 75 basis point interest rate hike by the Fed in November. The likely decision means that the Novogratz bull scenario could take longer to play out.
Bitcoin was already falling ahead of the price data and was trading at $18,342 as of press time. The price was an intraday drop of 3.87%.
Bitcoin falls to $18,300 amid high inflation
Source – TradingView
A technical outlook shows Bitcoin crashing below the psychological support of $19,000. A bearish MACD crossover reinforces a bearish outlook on the largest cryptocurrency.
Should you buy Bitcoin?
$19,000 remains a crucial zone for Bitcoin buyers. Multiple bottoms have occurred at the level highlighting that bulls have defended the zone. That partly supports Novogratz’s view that the selling is over for BTC. However, BTC is not yet a buy.
The breakout candlestick should remain in our interest. A close below the $19,000 support could force BTC to a new low. However, considering the historical price patterns around the level, the daily candlestick could close higher. That would result in a bullish reversal signal and invalidate a bear view.