CNBC Futures Now trader Jim Iurio has predicted that bitcoin will trade above $6,800 based on market analysis that holds $6,000 as its critical support level. Speaking on the show alongside Anthony Grisanti, Iurio stated that market tacticals hold the key to accurately predicting the movement of bitcoin on any meaningful level.
He made the comments on September 20 during trading on the floor of the Chicago Mercantile Exchange (CME) ahead of the close of the latest CBOE bitcoin futures contract. In his view, while bitcoin does not seem to have any fundamentals with which to base its pricing on, the use of market tacticals can be a useful way to predict its pricing, specifically a trading technique called ‘stop-in’.
Stop-in Trading on Bitcoin Futures Contract
Responding to a question about how he intends to trade the bitcoin futures contract, Iuro stated last week:
“$6,000 is a big deal. I don’t know why it’s a big deal but if you look at the charts, it’s clearly something. Every time it gets there, it gets rejected again. If it trades at $6460, about $60 above where it is now, we do this technique a lot called the stop in. We wait for a little bit of strength and try to jump in at the right time.”
Continuing, he stated that with bitcoin then at about $6,460, he would make the call to stop-in with a target of $6,860. At press time, bitcoin price is trading at $6,750. In his view, only if bitcoin retraces to trade below $6,210 does the entire bet fall apart, leaving bitcoin to once again test the $6,000 support level.
Agreeing with this assessment, Anthony Grisanti stated that the sheer lack of fundamentals with which to price bitcoin makes it a necessity to base trades off of tactical data.
In his words:
“When you don’t have anything else like fundamentals to trade off of, you trade off of tacticals, and that’s what Jim is doing. He’s stopping himself in at a tactical level, looking for a follow-through. If he doesn’t get it, he’s not in the trade.”
Concluding, Iuoro stated that while the lack of fundamentals means that it is difficult to price bitcoin, price discovery nevertheless does happen in the market, and this appears to be taking place with $6,000 looking increasingly likely to be the asset’s crucial support level.
CCN reported on Thursday that bitcoin rose over 1.5 percent against the US Dollar, moving steadily toward $6,500-fiat in spite of the hack at Japanese exchange Zaif which led to the loss of 6,000 BTC.
Featured image from Shutterstock.
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