Bitcoin (CRYPTO: BTC) should be viewed as a trading vehicle, as it is highly speculative and volatile, DoubleLine Capital founder Jeffrey Gundlach said Thursday on CNBC's "Fast Money Halftime Report."
Gundlach told CNBC he thinks "Bitcoin is a proxy for speculative fervor."
He said he was extremely bullish on Bitcoin in 2020 when the cryptocurrency was trading around $5,000. He became more neutral when Bitcoin crossed $23,000, he said.
Gundlach acknowledged that he turned neutral too early, as the cryptocurrency ran over $60,000.
Gundlach's Technical Analysis: He described the Bitcoin chart as "scary."
At the $60,000 level, Bitcoin became exhausted, Gundlach said.
The chart is showing a massive head-and-shoulders top, he said, adding he's normally not a believer in head-and-shoulders patterns — yet the pattern in the Bitcoin chart looks pretty convincing.
Gundlach believes that investors will have an opportunity to buy Bitcoin around the $23,000 level again.
"I would not own Bitcoin presently. I think you'll have an opportunity to buy it at a cheaper level."
Related Link: Bitcoin Is Worth Zero: 'Black Swan' Author Nassim Taleb
BTC Price Action: Bitcoin is up 8.45% year-to-date.
At last check Thursday, Bitcoin was down 3.58% at $31,738.69.
Photo by Eivind Pedersen from Pixabay.
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