Buy Bitcoin if S&P 500 Corrects Lower Fund Manager Suggests

Investors should consider buying Bitcoin if the S&P 500 breaks lower, according to Victor Dergunov, co-founder of Albright Investment Group. The cryptocurrency’s upside potential is substantial, even if it falls towards $6,500. Spot gold is also an attractive investment alternative against a slippery S&P 500. Bitcoin is an attractive destination for investors looking to shield themselves from the next stock market crash, asserts Victor Dergunov. The co-founder of Albright Investment Group, a Connecticut-based investment firm, said the cryptocurrency has adequate upside potential, even though its recept attempts to break bullish on a critical resistance level near $10,000 have failed. BTCUSD logs a decent recovery after falling 10% from its $10K high | Source: TradingView.com, Coinbase He noted that bitcoin might have found a bottom near $8,700, a level that capped the cryptocurrency’s downside correction from flourishing throughout May 2020. Mr. Dergunov took cues from a “constructive” bitcoin futures that were trading above $9,000. “A break above $9K represents a momentum change in my view,” wrote Mr. Dergunov. “Next, BTC should test the $10K level and plausibly break out higher after that.” S&P 500 Looks Bleak Mr. Dergunov’s positive comments on Bitcoin surfaced in the wake of a bleaker S&P 500. The fund manager said the U.S. benchmark index has weaker upside potentials, citing its poor underlying metrics that concerns less-than-expected earnings and profits. He further lambasted the S&P 500’s 40-percent recovery from its mid-March low for having fuelled by a surplus Federal Reserve stimulus. The U.S. central bank announced in March 2020 that it was cutting interest rates to near zero. It also accelerated a flood of bond-buying programs to stabilize the U.S. economy while bolstering the availability of credit. The Fed chair Jerome Powell noted that they would do anything to protect the market from pursuing a financial meltdown. The government additionally intervened by approving more than $3 trillion in spending to combat the economic crisis. The net stimulus now expects to breach above $10 trillion. S&P 400 breaks above 200-day moving average | Source: TradingView.com Mr. Dergunov asserted that the S&P 500 would benefit for a while from the multi-trillion dollars of liquid injection. But once the Fed pulls back, the U.S. benchmark will fall. The prediction converged with a technical overview provided by Jason Goepfert, an analyst at Sundial Capital Research. He noted earlier this week that there is about 72 percent chance the S&P 500 breaks lower if it trades near its 200-day moving average wave. The index last night broke above the said resistance. Old fractals show that it could now undergo a 12.7 average downside correction in over the next six months. Mixing the technical signals with Mr. Dergunov’s analysis, a bearish S&P 500 looks possible. Bitcoin Rivals Mr. Dergunov also recommended alternatives to Bitcoin that could behave as a hedge if the stock market slips. They included spot gold, a top Bitcoin rival, that recently logged its seven-year high above $1,700. The precious metal is now correcting like the cryptocurrency, but Mr. Dergunov asserts that the pullback would prompt more investors to purchase the dip. XAUUSD corrects 3 percent after topping at $1,765.30 | Source: TradingView.com, ICE The analyst predicted the same about Bitcoin, stating that the crypto could fall to as low as $6,500, but its upside potential would remain stable.

Originally from Bitcoinist.com https://ift.tt/2TIuR6L