A prominent analyst who nailed Bitcoin’s ascent to around $19,000 back in July is mapping out the key levels for the leading crypto asset amid marketwide uncertainty.
In a new tweet, the crypto strategist known as Jack Sparrow tells his 154,900 followers that the $1 trillion market cap level, which is around $53,500, is a crucial level to hold for the bulls. He says a move below the $53,500 support runs the risk of a massive sell-off to the next support around $43,000.
“$1 trillion was the 0.618 retest of the bounce after the $51,000 bottom and time of tweet price was at the 0.5 of the highs to lows (center range). Not a place to long. If we lose the structure, orange is support.”
The analyst also highlights that bulls will be back in the driver’s seat if they manage to push the market above $61,000.
While Bitcoin continues to consolidate in a wide range, Jack Sparrow notes that the violent dip on April 17th that saw BTC drop from $59,000 to $52,000 in matter of hours has triggered the return of volatility in the market.
“Bitcoin’s on-chain volume has awakened in recent weeks from its March slumber. Low volume periods go hand in hand with consolidation of price. An uptick in volume on-chain and yesterday’s capitulation event are likely indicators of renewed sustained volatility.”
In the midst of the spike in Bitcoin volatility, Jack Sparrow reveals that he bought the BTC dip and expects the market to continue trending higher.
“Consolidation in an up-trend generally resolves to the upside and yesterday was the perfect capitulation spring. I know where my bet’s at.”
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