A closely followed crypto strategist is sending a warning to Bitcoin (BTC) traders, highlighting that BTC is flashing a massive bearish signal.
Analyst Kevin Svenson tells his 106,500 Twitter followers that Bitcoin is now trading below a crucial support area that has kept the market bullish since late 2020.
“People’s bias tends to blind them in moments like this. Remember, we have a macrotrend breakdown on our hands for BTC. TA [technical analysis] is TA. This is a sign of weakness. In this type of structure, traders sell into bounces. We will probably just spend months sideways or down bottoming out.”
Although Svenson is bearish on Bitcoin, he says that it is very unlikely that BTC will go down in a straight line. Instead, he expects the leading cryptocurrency to trade within a range while showing volatile price action.
“A lot of people are very panicky and always think the market is going to pump big or dump big. Sideways volatility is usually more likely. We may hang out at low levels for a while… ‘Sideways’ in crypto means – face-melting pumps/dumps over a long period of time that result in no significant change in price.
That’s what I expect for Bitcoin and crypto as we wait for the halving.
Ex. 2019 / 2020 era.”
The next Bitcoin halving is scheduled to happen in the first six months of 2024.
In a recent video, Svenson said that Bitcoin flashed a massive volume signature on Coinbase’s weekly chart. According to the crypto analyst, the surge in volume suggests that BTC may be temporarily carving a bottom. However, he notes that Bitcoin’s price action will likely depend on the performance of the US stock market.
“If the stock market plays out a rally from this point, at least this will be the bottom for that temporary rally wherever that may lead us to. At the very least, it will probably hold as a bottom for quite some time.
If the S&P 500 does start to come back down and test lower at a later date, then it’s possible that this is not a perfect signal and that more likely we may test just slightly than it, maybe towards $20,000, $22,000 or the 200-week simple moving average.”
At time of writing, Bitcoin is changing hands for $30,516.
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