Jeffrey Gundlach Expects Bitcoin To Reach This Level

Bitcoin BTC/USD 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.

Posted In: CryptocurrencyMarketsMediaCNBCFast Money Halftime ReportJeffrey Gundlach
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!