Bitcoin recovering from its recent lows.
The cryptocurrency climbed nearly 9% on Wednesday after hitting a three-week low on Tuesday, partly driven by El Salvador becomes the first country Accept Bitcoin as legal tender. Interactive Brokers also said Wednesday that it would start crypto trading on its popular platform by the end of summer.
But significant obstacles remain, long-term Bitcoin bull Todd Gordon told CNBC “Trading nation” On Wednesday.
“We recently got bitcoin shorts. We got it covered, ”said the founder of TradingAnalysis.com, adding that he is still a long-term owner. “There are many bad things, bad narratives, that speak against it.”
With investors still reluctant to use it as a store of value, competition is growing from ether increasingly, the governments of China, Turkey and India take action, and Tesla boss Elon Musk Raising environmental concerns, bitcoin headwinds are not exactly rare, Gordon said.
“If we look at the specs, we saw a 53% drop in 2019, a 62% drop in ’20 and only a 53% drop. So we could go a little lower, but right now I think we” are neutral, “said Gordon.
He suggested watching some key inflation data – the consumer price index (CPI), slated to be released Thursday – for clues as to where Bitcoin could go next.
“If that CPI number isn’t hot, watch Bitcoin’s reaction and that will tell you it may be an inflation hedge,” he said.
Another bitcoin bull wasn’t as concerned in the short term.
“I’m still optimistic and I’m still buying,” said Delano Saporu, founder and CEO of New Street Advisors Group, in the same “Trading Nation” interview.
With El Salvador, “you see a country that may be able to create a level playing field for many people,” said Saporu.
“You mentioned that 70% of the people in the country do not have financial services readily available,” he said. “This is one of those use cases that a lot of people are optimistic about when it comes to cryptocurrencies in general, so we’re definitely still buying and definitely still optimistic.”
Disclosure: Gordon owns Bitcoin and shares in the Grayscale Bitcoin Trust (CONDITIONS). Saporu and the New Street Advisors Group own Bitcoin.