A futures and forex trading expert says Bitcoin traders should exercise caution as BTC hovers well above the $16,000 mark.
In a new post on TradingView, Marc Principato, the executive director of trading and investment analysis firm Green Bridge Investing, says he thinks it’s dangerous to go long on BTC with the chance that some will take profits at the leading cryptocurrency’s current levels.
He says traders shouldn’t get “sucked into the hype,” and he’s been preparing for a BTC correction since it first breached the $15,000 mark.
In the short term, he expects Bitcoin to correct to as low as $13,600 before a push toward all-time highs begins.
“As of right now, there is still no reason to take any longs. The nearest significant support level continues to be in the mid $13,000 to low $14,000.
Our plan requires 3 things to unfold before we can assume any risk: 1st we need to reach a predetermined level (14,250 to 13,600), 2nd we need price action to produce a clear setup (chart pattern, candle stick pattern, etc.), and 3rd we need confirmation.”
Principato says the broader trend remains bullish and a move to $20,000 is possible in the months ahead.
At time of publishing, Bitcoin is up 4.44% in the last 24 hours at $16,705, according to CoinMarketCap.
Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
Featured Image: Shutterstock/Tithi Luadthong