A popular crypto trader who accurately called Bitcoin’s ascent to around $19,000 back in July is taking profits and believes BTC is due for a correction.
The crypto strategist known in the industry as Jack Sparrow says he is managing risk as BTC ascends close to its all-time high (ATH) of $20,000.
“I have been called a delusional permabull for building and expanding my longs at $4,000, $5,000, $6,000, $8,000, $10,000, $13,000, $14,000 and $16,000 calling for $18,000-$19,000. I have now taken profit near ATH and in cash after a 400% rally since March and getting laughed at by the same people…
I am just taking away the opportunity for the market to negate unrealized profits. If the market is generous, I get an opportunity to long lower. If not, I’ll get to buy later as a risk defined level”
While waiting for Bitcoin to correct, Jack says that he’s keeping a close eye on Ethereum (ETH), yearn.finance (YFI), and Uniswap (UNI) as his top altcoin picks.
Although Jack is short-term bearish on BTC, he believes Bitcoin could rise to $396,666 by 2023 as gold loses its appeal as a store-of-value asset.
He also suggests that the largest cryptocurrency will go through two shorter cycles, peaking at 2021 and 2023 before entering a long bear market cycle. Jack’s speculative theory is based on the adoption cycles of gold and tech.
“Here is the deal: tech became a reserve asset, replacing the gap gold left behind gold was a reserve asset, losing merit. Tech is where many dollars got stored and gained/preserved wealth. Bitcoin is an extension of tech, an extension with more features than gold.”
Supporting his view of shorter cycles, he looks at the logarithmic scale to illustrate how the current rally is “faster and steeper” than the previous bull markets.
“Price, on a logarithmic scale, is outperforming the 2013-2017 cycle for now. Maybe a bit early to say, but I think this cycle will compete with the previous one.”
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