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.
[adinserter block="1"]“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.”
[adinserter block="1"]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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Featured Image: Shutterstock/MoVille
