NYMEX Trader: Bitcoin Soon to Move Back to $7,000, Markets to Consolidate

A cryptocurrency trader at the New York Mercantile Exchange (NYMEX) said that bitcoin (BTC) will likely move back to $7,000 and consolidate soon in an interview with CNBC on May 21.

Delivering his comments on CNBC’s Trade Alert show, Anthony Grisanti of NYMEX said that he thinks the price of bitcoin will get back to $7,000 in a short period of time, meaning that the market will consolidate. “I think it consolidate a little bit … I think consolidation for this market is very healthy,” Stutland stated.

The trader further noted that over the last few sessions, volumes have come back down, which indicates that buyers are not returning to the market with the same strength they were a few weeks prior.

Yesterday, cryptocurrency fund manager Brian Kelly told CNBC that an upcoming supply cut — or the “halvening,” next due to take place in 2020 —  could help bitcoin prices rise further in the coming months. He recommended investors dedicate between 1% to 5% of their portfolio to cryptocurrency while prices are stuck around the current levels of $8,000.

On May 20, strategists from United States banking giant JPMorgan Chase argued that bitcoin’s recent rally ostensibly soared past what they calculate to be its intrinsic value. The strategists judge that the top coin has recently been trading in a way that mirrors its late 2017 rally, which preceded a protracted price slump:

“Over the past few days, the actual price has moved sharply over marginal cost. This divergence between actual and intrinsic values carries some echoes of the spike higher in late 2017, and at the time this divergence was resolved mostly by a reduction in actual prices.”

At press time, the leading digital currency is trading at $7,931, having lost 1.02% over the past day, according to CoinMarketCap. Looking at bitcoin’s monthly chart, it has gained almost 50%.