Kitco NEWS has a diverse team of journalists reporting on the economy, stock markets, commodities, cryptocurrencies, mining and metals with accuracy and objectivity. Our goal is to help people make informed market decisions through in-depth reporting, daily market roundups, interviews with prominent industry figures, comprehensive coverage of important industry events and analyses of market-affecting developments.) bulls lacked the momentum to muster a breakout above $53,000.
Stocks oscillated between positive and negative territory on Friday, but ultimately succumbed to the negative outlook gripping the market. At the closing bell, the S&P, Dow, and Nasdaq were in the red, down 0.48%, 0.37%, and 0.82%, respectively. Poppe warned that basing trading decisions on sentiment is perilous because “Sentiment is always a wrong indicator.”
“Ultimately, a trade is defined on the horizon that you're looking to hold the asset ,” he said. “If your horizon is relatively short, then it might not be +EV to buy an asset that appreciated 35% in 10 days . Same goes for swing trading purposes.” “However, if your horizon is 2-3 years from now and you expect to see Bitcoin at $150K+ in that window, then there's no big issue with starting to scale in at these prices,” he added. “Once again, there's more confirmation to enter the markets in a correction than in an upward push.”
“Those corrections, with the current sentiment, are going to be swift,” he warned. “I don't know exactly from where these will happen, but given the data, it's reasonable to suspect that the markets are peaking between $53-58K and will get a 20-40% correction from there.”