Top Trader Issues Warning to Bitcoin Bears, Says Now Is Not the Time To Get Overly Cautious on BTC

The trader who called the May 2021 collapse in the crypto markets says that now is not the moment to be excessively risk-averse on Bitcoin (BTC).

Pseudonymous trader and analyst Dave the Wave tells his 138,500 Twitter followers that to be cautious right now when prices are low is more of a play on sentiment rather than an informed decision based on the charts.

“Reminder: best to be cautious at the top… and less so at the bottom… 

To be too cautious at the bottom would be counter-productive…. and you’d think counter-intuitive. An over-cautious narrative would just be a play on sentiment…. just as the over-optimistic narrative was at the top.

This is where contrarianism makes some sense, which runs counter to sentiment… and the mass of a large [following]. 

Ask yourself this – are those that are over-cautious now [that you’re listening to] over-optimistic at the top?”

Dave the Wave also shares Ethereum’s (ETH) chart, implying that the leading smart contract protocol is within the later stages of an ascending triangle, a generally bullish pattern that suggests a potential trend reversal if the price takes out the pattern’s horizontal resistance at around $2,300.

Last month, the analyst said that strong support levels were sitting between the $26,000 and $22,000 levels for Bitcoin.

According to Dave the Wave, BTC is still respecting the support levels despite the recent market downturn.

“BTC price meeting support at one and two… so far.”

At time of writing, Bitcoin is trading at $26,501, while Ethereum is priced at $1,724.

Generated Image: Midjourney