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.