Despite Bitcoin’s breakout to new all-time highs, a closely followed crypto trader thinks that Bitcoin (BTC) could still dip below $55,000 before moving higher.
The pseudonymous analyst known as Cantering Clark tells his 79,000 Twitter followers that the price areas around $55,000 and $65,000 could be key entry levels for Bitcoin investors looking for a breakout run.
“As far as swings go and meaningful deployment of capital, these are the only two areas where I would get really aggressive. If the drop scares you, just look back to a similar structure in February.”
The crypto trader adds that he’s waiting for Bitcoin to decide between another retest or an immediate breakout before entering another position.
“My positioning –
Still out swings/positional trades until reclaim of ATH [all-time high] for BTC.
Only focusing on lower timeframe activity unless Bitcoin reclaims that level or comes down to test a significant level.”
Cantering Clark’s prediction of a possible drop to around $55,000 comes as he highlights Bitcoin’s less-than-stellar performance after briefly breaching its previous all-time high of around $64,000.
“One problem with Bitcoin, in particular, is everyone looks to previous cycle behavior to confirm current behavior, in something just over a decade old. Having gone through changes in context and regime you should expect new things to occur. Like a lackluster ATH break for example…
Yes. Lackluster. If a level is deemed to be very important by the market, then the response and amount of participation at that level should be significant.”
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Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
Featured Image: Shutterstock/Warm_Tail