Analysts Caution Crypto Traders, Say Lower Highs Signal Major Correction Incoming
A pair of crypto analysts aren’t buying bullish optimism on Bitcoin’s short-term prospects.
Crypto trader and entrepreneur Bob Loukas says Bitcoin’s rally that began in December of last year is on hold, with Bitcoin now posting a series of lower highs in succession. Loukas expects BTC to move as low as $7,900 in a “major shakeout” before a renewed rally begins.
“Buy and hold as if it’s going to rocket out of this consolidation. But know the intermediate-term rally from Dec lows ended. Therefore, a major shakeout from this consolidation, before a continuation, would be perfectly normal behavior.”
Meanwhile, a fellow analyst who goes by the alter-ego Squeezy told his 104,000 followers on Twitter that a doji top in Bitcoin’s daily chart indicates Bitcoin is poised to hit $10,500 before dropping below the $8,000 mark.
The doji is a candlestick pattern that’s used to identify potential market reversals based on prior price action.
Daily doji spotted. Expecting price to move up to ~$10,500.
So far, we have lower highs.
Doesn't exactly instill confidence in moving up past $11,000.
Long scalping to $10,400+
Short entry target: 10,500 pic.twitter.com/THVs2esuT2
— Squeezy (@cryptoSqueeze) August 23, 2019
Meanwhile, the CEO of financial advisory giant deVere Group is feeling far more bullish.
Nigel Green tells The Independent that the US-China trade war is likely to drive the price of Bitcoin higher.
“Escalating tensions between the two world’s largest economies will see investors pile into decentralized, non-sovereign, secure currencies, such as Bitcoin, to protect them from the turmoil taking place in traditional markets.”
“It bounces at this price. If it fluctuates below this level, it shoots back up again. We have seen this in action on Monday when Bitcoin hit $10,500 in a matter of minutes.”
If the Sino-U.S. trade tensions were somehow dramatically de-escalated and the global economic outlook became more optimistic, the Bitcoin price would still continue to rise due to the other major factors driving it – not least the growing public awareness and institutional investment.”