Crypto Bull Market Base Is 'Being Built' as Bitcoin Price Briefly Tops $26.7K: CoinRoutes CEO

Bitcoin is pairing some gains after flirting with 26,800 in the last 24 hours. Joining us now to discuss the crypto markets is coin root CEO and co-founder Dave Weisberger. Welcome Dave. Thanks for having me. Good morning, good morning to you. Just to get the ball rolling. Your outlook on what is happening with Bitcoin right now. Next support slash resistance levels. Well, I mean, we, we're kind of stuck, you know, in it. It's interesting what's happened. We were at 29,000 for what was it? Eight weeks and, you know, every rally was, you know, would get going on some news about Black Rock or Fidelity joining ETF S et cetera and the FOMO would not get materialized because long term holders would basically sit at the levels, not being willing to support the market, but basically, you know, competing with each other to accumulate. Uh We had an event last week where all the leverage in the system got flushed out. I've described this in detail. Happy to go into it if you care, but essentially what it looks like a momentum ignition event where someone decided to try to push the market down and was successful because they were able to encounter a lot of leverage out there which triggered in price and sensitive liquidations, et cetera, et cetera. And so we filed into a new range. Uh The new range seems pretty strong. Uh as you know, my friend, Scott Melker points out 25 2, give or take is a very important technician oriented uh level that people look at and it was not able to push past it, it successfully tested that level. And that was at the same time that if for, for technical indicator is one that I do watch is RSI relative strength index hit one of the, the certainly a multi year low uh during this selling. So I look at this as there's support in the 25,000, you know, 26 to 25,000 range. And the market is basically looking at that and it's kind of teetering between two swan events. So, you know, we have a Black Swan and a White Swan event that haven't happened yet that everybody's worried about. And that kind of keeps markets in range bound scenarios until they happen. And the two events are what's going on with bin the doj and other global authorities on the Black Swan side and what's going on with Black Rock Fidelity et cetera on the Bitcoin ETF side, on the White Swan side, either one of those could have a very large effect in in, in one direction or another, what do you think the catalyst is gonna be? So just to give you some context context, some of the analysts who have come on the show think that we may already be in a bull market. Um Some other analysts say that we are currently in a bear market. Uh What do you think the next catalyst is gonna be to kind of start that next rally? Well, markets that kind of exist to humble people, right? I mean, what will be the catalyst? I mean, the my my gut tells me both of those two swan events will resolve and then Bitcoin, which I believe is fundamentally undervalued, going into the having will resume its upside March. So I color me in the bullish camp. The one thing that that is a major caveat to this is if one believes that the global stock markets, us stock market in particular are going to have a very rough fall. And there are a lot of people who believe that for many reasons that there will be a broader market, sell off in the fall that will impact crypto other than that. However, if you don't believe that is the case, then I think that the the stars align for, I wouldn't say we're in a bull market. I would say that a bull market base is being built, you know, at these levels rather strongly. Uh it it, but you know, look those two swan events are very relevant. I mean, Binance is a major part of global liquidity and you know, with allegations ranging from, oh, it won't be a problem. You know, they'll pay a fine and move on to, oh my God, the whole thing could blow. And I have no, no, no personal data on Binance one way or another. I do want to make a point about BNB though, is a lot of the market sell off over the last few weeks has been tied to death spiral predictions of BNB and saying that that is necessary for finances liquidity and long term solvency. Once again, zero knowledge about whether that is true. I actually frankly doubt it. But, you know, until there's a full accounting on it, we won't know. But what I can say, I, I, I'm sorry, I was just, I want to make one point about BNB. What I can say is the liquidity just isn't there for it to be such an important, you know, market. Uh you know, you know, bellwether just, just to put it in perspective, you could sell, you know, if you sell $10 million worth of Bitcoin or $15 million worth of Bitcoin, you barely registers. I mean, it's gonna be somewhere in the neighborhood of a quarter of a bit of a, of a percent to half a percent price impact. If you sell $15 million worth of B and B right now on the book, you can knock it down across all major exchanges, even in the aggregate books down to 1 80. Now, I'm not saying that anyone is going to do that because that would be a rather idiotic kind of trade. But the reality is there just isn't much liquidity there. Yeah. No, we appreciate uh all the writers in, in the speculation. Uh It is obviously difficult to figure out how this is going to shake out. But I want to just ask you about the high A I thing. Uh A I focus tokens. So we've written articles today about it. Uh like fetch dot A I render and net are surging after NVI top uh second quarter earnings estimates signaling the British A I trend is here to stay. And you know, Jen was talking about capitalist. Uh where do you see A I figuring in your black swan, white swan, obviously white swan range. But, but how much of a cat would it actually be? Yeah, I think long term it is incredibly bullish for Bitcoin. Uh and, and tokens that are real projects. Uh um Unfortunately, uh you know, a lot of projects come out and make claims about A I, I mean, I've been you doing quantitative trading for years and I ran, you know, when I was running cr model, we were doing what people would call machine learning, but others would call it A I to try to attract investors. I mean, A I gets hyped in many things. But Bitcoin is very, very real because A I is going to consume vast amounts of data and need a digital store of value and method of transacting. There is no doubt Arthur Hayes lays this out extremely well. A few months ago. I fundamentally believe it and I think that as more and more value is created by computer networks having a purely digital method of transaction and value, excuse me is a very big driver of Bitcoin demand. And when you look at the Bitcoin statistics of long term holders, unique addresses, pretty much every fundamental one would care to look at, you know, hash rates, et cetera, they're all up to the right chart and while price kind of moves all over the place that A I narrative is extremely supportive of that long term vision, you know, a particular catalyst I think of in my head is something that's going to get everybody moving. You know, it could be as simple as, as someone would say that there's just not enough Bitcoin to satisfy the demand at these price levels. And so at some point, you'll run it, you know, it, it, it will create, you know, too much competition to buy and you'll get a bull run. And could that point be at any time? Yes, it could. Is it more likely going into and after that? Yeah, of course. All right, Dave, we're gonna have to leave it there. Thanks so much for joining us this morning. Thank you. That was Coin Roots, Ceo and co-founder Dave Weisberger.