Expect This Next Price For Bitcoin - Gareth Soloway

Name: Expect This Next Price For Bitcoin - Gareth Soloway
Uploaded: 2023-05-25T15:50:55.000Z
Duration: 22 min 15 s

Bitcoin Price Predictions

In this video, popular technical analyst Gara Soloway discusses his predictions for the future of Bitcoin's price. He believes that macroeconomic factors could keep impacting Bitcoin and other crypto assets for several more months, maybe until the end of the year when he expects Bitcoin to have dropped to $12-13k.

Bitcoin's Current State

Bitcoin is currently in a state of confusion as it doesn't know what it is yet - a digital gold or a risk asset.

The current sideways consolidation could continue for several more months and maybe into 2024.

As of press time, the leading cryptocurrency is trading at $26,200, its lowest price since March 17th.

Future Predictions

Soloway predicts that macroeconomic factors could keep impacting Bitcoin and other crypto assets for several more months, maybe until the end of the year when he expects Bitcoin to have dropped to $12-13k.

A drop to $9k will be an 86.95% drop from bitcoin's all-time high and another 65% drop from current prices.

Investors are still showing signs of immense greed especially with the amount of risky speculation that recently went into meme coins like Dogecoin and Pepe.

Market Analysis

If there is a recession and the stock market tumbles, it will take Bitcoin back down as well.

The FED may not print money this time around which will revalue the stock market 20%-30% lower from here.

Bitcoin Could Drop to $9,000

In this section, Solway discusses his views on the market and how he believes that a recession is about to hit the US economy. He also talks about the possibility of Bitcoin dropping to $9,000.

Market Expectations

The market expects tantrums to yield results.

There is a huge level around 23 to 24,000.

If that breaks, you're headed to the 15,700 level which is your double bottom.

If that breaks, your next stopping point would be 12 to 13.

Trader's Perspective

A trader looks at levels on charts.

If one level breaks and support breaks, the likely target is your next support line.

To me nine is a very intriguing number because if the 10,000 will be Max Payne and there's something about the markets and psychology of markets that makes it so that the market wants to flush out most people possible.

Recession Outlook

Solway believes a recession is about to hit the US economy.

With inflation still high, Federal Reserve will not be adequately motivated to come rescue of markets.

Prices for cryptocurrencies stocks and maybe even commodities are going to take further hits in H2 of year.

Support Levels

Strong support levels at 23,000 and in previous 15,700 FTX low.

Fed Chair Jerome Powell's Next Moves

In this section, Solway discusses his views on Fed chair Jerome Powell's next moves.

Market Anticipation

The market has already anticipated Powell's pause path.

As soon as he pauses that's one step away from cutting rates but I don't think that's the case.

Rate Cuts

Rates are not going down unless inflation comes significantly lower before even thinking about lowering rates.

Powell doesn't want to repeat the mistakes of Paul Volcker in the 80s.

Stagflation Narrative

Rates are not going down unless we get inflation back in the bag that's two percent and I don't see that happening for at least a year or two.

The most likely near-term outlook over the next six to 12 months is stagflation narrative.

Relief Rally for Regional Banking Stocks

In this section, Solway discusses his views on relief rally for regional banking stocks.

Trading Strategy

Solway is a shorter-term trader.

Things have been beaten down to probably levels where it's a little overbeaten.

If we just get some sort of relief rally which is very likely in the banking sector if things calm down a little bit, money flow heads back into them.

The Dangers of Investing vs Gambling

Gareth Soloway discusses the dangers of investing versus gambling and how it can lead to financial crises.

Investing vs Gambling

Investing is not the same as gambling, and confusing the two can lead to financial crises.

The 1999-2000 collapse and the 2007 housing market crisis were both caused by people gambling with investments.

Flashing warning signs are appearing again in 2022, indicating that some Mega cap Tech plays have gone up too much.

Short-term Strategy

A short-term strategy would be to take advantage of these warning signs by taking a contrarian view on a recession and attacking big cap tech plays.

However, Soloway expects a significant bounce over the next couple of weeks before a potential recession later in the year.

Confidence Builders

One confidence builder is that the government has shown they will make depositors whole, which gives confidence to move into positions in regional banking stocks while also taking a contrarian view on a recession.

Bearish on Bitcoin and Big Cap Tech Stocks

Gareth Soloway shares his bearish views on Bitcoin and Big Cap Tech Stocks.

Regional Banking Stocks

Soloway is long on regional banking stocks as he expects some recovery in this sector.

Last week saw significant gains in regional banking shares like PacWest Bancorp which gained over 23 percent but began giving back some of those gains recently.

Uncertainties Facing US Economy

There are many uncertainties facing the US economy later this year and early next year, including the debt ceiling drama.

House Republicans are insisting that President Joe Biden agrees to their stipulations for spending cuts before they raise the debt ceiling past 31 trillion dollars.