Financial media giant CNBC is notorious for its flagrant and often overzealous predictions, whether in the stock market, FOREX, housing market or cryptocurrencies.
In the case of Bitcoin, CNBC’s predictions have turned out to be 95% accurate… as a counter trade indicator, according to a Tradingview post made by Jacob Canfield. This means that 95 percent of the time that CNBC makes a price call, taking the opposite trade will give investors positive returns.
In Canfield’s analysis, he broke down the outcomes of all the major predictions made by CNBC in 2018, noting that with everytweet, Bitcoin typically sees on average a 30% return.
Almost every single bullish tweet we’ve seen has been at the top of nearly every single rally, giving us a very strong sell signal. With every bearish tweet we see, it has been a clear indicator of a short reversal and end of a rally.
Canfield also emphasized that CNBC has made 3 bearish tweets in the past week, which given the average 30% return bearish predictions, Bitcoin should push back to the $8500 area. This would likely further boost its market dominance, which currently stands at 56.2% within the AltDex 100 Index (ALT100), a benchmark index for large-cap cryptocurrencies and tokens.
When called out for over-analyzing historical data, Canfield made sure to emphasize that the counter-trade is still very viable. However, he notes that he anticipates CNBC to begin hedging their calls, which may work to convolute future accuracy.
We reported earlier this month that Ripple’s XRP was perhaps one of the worst prediction CNBC has made in recent history. On January 5, 2018, CNBC’s Fast Money ran a now infamous segment titled “Crypto Class: How To Buy Ripple,” where host Brian Kelly taught viewers how to purchase Ripple’s XRP while it was ‘only’ a little over $2.50 per coin.
This turned out to be the exact top of the market, and XRP currently sits at $0.32, a whopping 87.2% loss.
Photo: Tony Webster / Flickr
Disclaimer: This article’s author has cryptocurrency holdings that can be tracked here. This article is for informational purposes only and should not be taken as investment advice. Always conduct your own due diligence before making investments.