The highly regarded crypto analyst known in the industry as Smart Contracter is cautioning traders that Bitcoin may be readying itself for another sharp drop.
In a new tweet, the pseudonymous trader tells his 106,000 followers that Bitcoin is facing an important support level that, if lost, will likely precipitate a fall to the low $40,000 area.
“This is pretty much how I’m seeing BTC here. 46,000 is the last line of defense, we lose that and it’s straight to $40,000-$42,000 in my opinion.
I’ll also probably start unloading some spot around $54,000, if/when we get there.”
The analyst also shares that he likely won’t take any long positions over the weekend, as the king coin does not appear to be finished with its price correction.
“Unfortunately, BTC price action overnight still looks corrective and yet another lower high forming. I was anticipating a weekend pump but I think we will sweep the lows again at some point this weekend. No interest in longing just yet.”
Widely-followed crypto trader and analyst Michaël van de Poppe shares that he too believes Bitcoin is currently moving within a critical support zone and appears bearish on shorter timeframes.
The trader also tells his 34,500 YouTube subscribers that while Bitcoin does not appear ready to continue its rally, the king coin is still far above the 21 weekly moving average and as such remains bullish over higher timeframes.
“If we look at the daily timeframe for Bitcoin we can see that we’re currently in a support zone. So we have been discussing that [range] in between $42,500 and $45,000 as a very critical support zone. That is where we are currently. However, we have rejected that $52,000 zone.
Also, if we have the weekly timeframe we can watch a very important moving average for an ultimate bottom scenario. And that’s the 21-weekly moving average. We can see that if we zoom out there’s nothing to worry – we are in a very bullish cycle still.”
The analyst warns traders that Bitcoin’s painful correction will likely take three to four weeks until the king crypto finds a bottom and that the crypto markets in March are not usually kind. However, if the flagship crypto can again breach the $52,000 level, then Van de Poppe may be convinced that the charts have turned bullish again even on shorter timeframes.
Don’t Miss a Beat – Subscribe to get crypto email alerts delivered directly to your inbox
Follow us on Twitter, Facebook and Telegram
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/Tithi Luadthong