A closely followed crypto strategist Bitcoin (BTC) He warned its traders and stated that Bitcoin is giving a big bearish signal.
Analyst Kevin Svenson noted on his Twitter account of 106,500 followers that Bitcoin is currently trading below a crucial support area that has kept the market bullish since late 2020.
“People’s prejudices can blind them at such moments, always remember that. We may have a macro trend break for BTC. Technical analysis is technical analysis… And this breakout means a huge weakness, in such structures traders sell when the bounce occurs. We will probably consolidate for months or we will hit rock bottom and lose.”
Svenson, bitcoin priceHe says it is unlikely that BTC will drop in a straight line, although there is a bearish trend in the index. Instead, he expects the leading cryptocurrency to trade in a range while showing volatile price action.
“People in panic often think that the markets are going to make a big rise or a big crash. Side volatility is actually much more likely. We can stay low for a while. This is what I’ve been waiting for for Bitcoin and crypto as I wait for the halving. Old. As we live in the 2019/2020 period.”
The next Bitcoin halving is scheduled to occur in the first six months of 2024.
In a recent video, Svenson noted that Bitcoin is posting massive volume gains on Coinbase’s weekly chart. According to the crypto analyst, the increase in volume is important proof that BTC can make a temporary bottom. However, he noted that Bitcoin’s price action will most likely depend on the performance of the US stock market.
“If the stock market rally from this point on, at least that will be the bottom of this temporary rally wherever it takes us. At the very least, it’ll probably stay at the bottom for quite some time.
If the S&P 500 starts coming back and testing lower at a later date, it’s more likely that it’s not a perfect signal and we test a little more of it, perhaps towards $20,000, $22,000, or the 200-week. simple moving average.”
At the time of writing, Bitcoin was trading at $30,516.
Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, Koinfinans and the author of this content cannot be held responsible for personal investment decisions.