A popular crypto analyst who called Bitcoin’s recent drop from $12,000 to $10,000 is warning would-be traders and “buy-the-dip” enthusiasts that Bitcoin’s price will likely fall off a cliff in the short-term.
The anonymous analyst known in the industry as Crypto Whale tells his 33,000 Twitter followers there’s a strong chance Bitcoin (BTC) will lose 60% of its value.
“As Bitcoin and stocks slowly plunge through their magical support lines over the next few months, the common saying will be to ‘buy the dip.’ Zoom out. You’re not buying any ‘dip’ up here. You’re still buying at a 300% premium from March lows.
The trader says BTC is likely to retreat to below $4,000, shaking out weak hands before clearing a long-term path to all-time highs.
As I’ve mentioned before, there’s a higher chance we revisit under $4,000 before reaching ATHs. You should have extra money on the sidelines just in case. I also predict the dollar to rebound nicely in the short term as investors flee back to that (for now).”
Crypto Whale says regulations could have a crippling short-term impact on crypto prices, arguing that President Donald Trump’s denouncement of Bitcoin on Twitter alone last year took the price down from $13,500 to $3,500 over eight months.
#Bitcoin went from $13,500 to $3,500 after President Trump posted a single tweet, denouncing it.
Imagine the panic in the markets when cryptocurrency regulations are eventually added.
In February, Steven Mnuchin said they were planning to release them this year.
— CryptoWhale (@CryptoWhale) September 8, 2020
However, other Twitter users say that’s a misleading argument, noting that Bitcoin was already starting to come down in price before Trump tweeted about it. They also point out that the majority of Bitcoin’s loses came in conjunction with the pandemic-related stock market plunge in March.
Crypto Whale nonetheless believes regulations will be good for the crypto industry over the long term but will “destroy” Bitcoin and altcoins in the short term.
The analyst is also outspokenly bearish on most decentralized finance (DeFi) projects. He says traders need to do extreme diligence, warning “people will buy into anything as long as they are promised astronomical returns.”
Important message as we continue the #Bitcoin bear market:
– Buying up here is risky
– You can lose all of your money
– Avoid DeFi Scam Tokens (99%)
– Don’t FOMO in on tiny bounces
– Don’t open high leveraged longs
– Don’t try catching a falling knife
– Control your emotions— CryptoWhale (@CryptoWhale) September 7, 2020
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