Bitcoin traders are trying to gauge the market before the US Securities and Exchange Commission makes its next decision on yet another Bitcoin ETF proposal.
In this Bitcoin (BTC) indicator, bullish and bearish tweets from CNBC’s Fast Money are used to chart Bitcoin price action. Covering cryptocurrency trends, the show regularly features market analysts and experts.
#Bitcoin stuck below $6,500, and @AnthonyGriz is betting on more pain to come pic.twitter.com/4vIGptyuAr
— CNBC Futures Outlook (@FuturesOutlook) August 21, 2018
Jacob Canfield, a trader and investor, says he wanted to test the theory that “CNBC is a good contraindicator”. According to his data, a major rally is on the way.
He explains,
“After back testing what I like to call the ‘CNBC Bitcoin 4.90% Indicator,’ it is giving us a clear buy signal in this new range.
Almost every single bullish tweet we’ve seen has been at the top of nearly every single rally, giving us a very strong sell signal.
With every bearish tweet we see, it has been a clear indicator of a short reversal and end of a rally.”
#1 – 90% return.
#2 – 26% return.
#3, #4 #5 – 34% return.”
After posting his chart on Twitter at noon, Canfield has racked up over 200 retweets and 600 likes.
Perhaps in an effort to shake Canfield, CNBC’s Fast Money labeled their most recent tweet “neither bullish nor bearish.”
This tweet is neither bullish nor bearish. $BTC pic.twitter.com/vJMJ0V1fGF
— CNBC's Fast Money (@CNBCFastMoney) August 22, 2018
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Both the ProShares Bitcoin ETF and the ProShares Short Bitcoin ETF are based on futures contracts that were approved by the Commodity Futures Trading Commission in 2017. The upcoming deadline for a decision on the proposals is on or by August 23. It will come on the heels of the SEC’s latest rejection on an ETF proposal from the Winklevoss twins and a delayed decision on a proposal from VanEck.
BTC spiked today, rising to a 24-hour high of $6,882 from $6,459, according to WorldCoinIndex. At time of writing, Bitcoin is trading around $6,710.
