Jeffrey Gundlach is the founder and CEO of DoubleLine Capital, a firm with $135 billion under management. His personal net worth stands at ~ $2.5 billion. He made some pretty interesting comments about two asset classes yesterday - US Dollar and Bitcoin.
Gundlach believes that Bitcoin is headed to $23,000 and the recent price action makes his conviction even stronger. He sees a head and shoulders top forming that should propel Bitcoin to lower levels.
The first head and shoulders top was completed and bitcoin fell to about $32k. I hadn't noticed the most recent head and shoulders but it is forming just above the $30k support line. That indeed will take Bitcoin to levels between $21k and $24k depending on where on draws the base on the pattern. The good thing is that the neck of the head and shoulders has not been broken and Bitcoin has been toying with that line for weeks now.
The other asset is the US dollar. Gundlach feels that short-term, the US dollar may rally but based on the fiscal situation of the US, the US Dollar is more likely doomed. He also thinks that Bitcoin is a good bet against the US Dollar under his longer-term scenario.
The DXY chart is showing a head and shoulder bottom, as I had mentioned in my previous posts. The pattern is complete in my opinion and should send DXY to 98 - 100 level. That is the highest level I think DXY should head to before a reassessment of the chart and overall macro is needed. Of course, I am no Jeffrey Gundlach. However, technically, I too see short-term strength in the US Dollar. The long-term scenario is such that it can outlive us.
Gundlach often addressed as The Bond King, is a man one should listen to when he speaks. The Bitcoin world is such that it can prove the best of the best wrong. However, on matters of Global Macro, his word is often gold.