Bitcoin will continue to trade sideways, stocks may only bottom in 2031 - Patrick Karim
(Kitco News) - The next few years could be a "sideways grind" for Bitcoin as it continues to remain flat, said Patrick Karim, Co-Founder of NorthstarBadcharts.com, who spoke with David Lin, Anchor and Producer at Kitco News.
"[Bitcoin] is probably going to bottom in that $10K range… and stay like that for a long time, until the SPX or NASDAQ can bag capital flows from commodities," he said. "It could definitely be at least a year or two years of sideways grind."
Karim, a technical analyst, added that it could take about a decade for stock markets to experience a bottom, and that investors are in for a long-term bear market.
"It could be 2031 before the SPX really bottoms versus inflation," he said. "It could [even] be 2031, 2035, or 2041 if we repeat what happened in the Great Depression. It could be a long time, and all these rallies, for me, are bear market rallies."
Some analysts predict that Bitcoin will reach $100K Bitcoin by 2024, a forecast that Karim attaches a probability of "1 percent" to "5 percent" to.
"When I hear that, it's total nonsense at this stage," he said. "[The analysts] are not playing the probabilities… At least put it on a chart and give me some objective evidence that it is possible."
Karim claimed that there are Bitcoin "bag holders that need to be wiped out," and that Bitcoin was a "bubble."
"It's pretty much done, we've had peak Bitcoin, the laser eyes, all that," he said.
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The collapse of FTX, once the world's third-largest crypto exchange, could have been predicted, had investors paid attention to FTT, the native token of FTX, according to Karim.
"[FTT] closed below its 12-month moving average back in November of 2021 and December '21," he said. "The momentum was slowing down… When momentum slows down, you step out because you're at risk."
By June of 2022, FTT was a "time bomb," Karim claimed based on his technical analysis.
"There was no reason to hold that FTX token for the past six months, no reason at all," he said. "Look at charts, look at the evidence."
To find out Karim's forecast for the gold price, watch the video above.
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