Three Reasons Why Bitcoin Bulls Should Be Cautious, According to Brian Kelly

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Wed, 11/25/2020 - 06:03
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Alex Dovbnya
CNBC's Brian Kelly has turned cautiously bearish on Bitcoin
Three Reasons Why Bitcoin Bulls Should Be Cautious, According to Brian Kelly
Cover image via www.cnbc.com
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Speaking on CNBC's Fast Money, top trader and self-proclaimed Bitcoin televangelist Brian Kelly named three caution signs for the bulls who might have become a bit too euphoric.

While Kelly claims that he is still bullish in the long-term, he believes that a major correction could be on the cards.    

Three reasons to be cautious 

Kelly — who captured the zeitgeist of the previous bull market top with his TV tutorials about XRP — is convinced the retail FOMOing into altcoins could be a major worrying sign for the bulls:      

“We are starting to see speculative coins. Coins that are under five dollars start to go up 30-40 percent in a day.” 

As reported by U.Today, XRP skyrocketed by over 137 percent over the past four days.
 
When it comes to Bitcoin’s fundamentals, Kelly notes that the big implied address growth is yet another reason to be cautions.

Finally, he states that the interest rates that are charged on margin positions are going higher.

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Bitcoin’s rally cools

On Nov. 25, Bitcoin managed to score its third highest daily close ever of $19,172 on the Coinbase exchange. 

Yesterday, the cryptocurrency was on the brink of touching its lifetime high of $19,891. 

At the time of writing, the cryptocurrency is down 1.61 percent, dipping below the pivotal $19,000 level. 

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About the author

Alex Dovbnya (aka AlexMorris) is a cryptocurrency expert, trader and journalist with extensive experience of covering everything related to the burgeoning industry — from price analysis to Blockchain disruption. Alex authored more than 1,000 stories for U.Today, CryptoComes and other fintech media outlets. He’s particularly interested in regulatory trends around the globe that are shaping the future of digital assets, can be contacted at alex.dovbnya@u.today.