Bitcoin risks falling below $50,000, according to a trade setup shared by Jonny Moe, an independent market analyst.
The social networks influencer, commonly tracked by investors and traders in the cryptocurrency space, revealed the bearish setup in a tweet published early Tuesday. He closed what he called “take advantage of long” positions, which refers to the indebted purchase of a property with anticipation that it will increase in worth. The move suggested that Mr. Moe expects the bitcoin cost to remedy enormously in the sessions ahead.
“I’ve closed up leverage longs up until [the bearish setup] sorts itself to where I’m not totally and absolutely shook by it,” the analyst wrote.
Bitcoin and $60,000
The call to deleverage appeared after Bitcoin stopped working to breach the $60,000-level repeatedly in previous everyday sessions. Each of its breakout tries consulted with higher selling pressure, apprehensively liquidating traders– who had positioned bullish bets on levels above $60,000– at losses.
Bitcoin rate outlook, as highlighted by Jonny Moe. Source: BTCUSD on TradingView.com Mr. Moe noted that he would feel confident need to the bitcoin rate breach$61,000 at least. Till then, he expected the cryptocurrency to pull back to the downside, according to the setup provided in the chart above. Mr. Moe did not reveal whether he has put a brief bet on the stated short-term bearish outlook. However, Mr. Moe presented sufficient factors behind his mindful approach. One of them consisted of a relatively ongoing…
…… … Altcoin Season
This week saw Bitcoin’s topmost competitors at the top of their video game. Ethereum, the second-largest cryptocurrency, blasted past its psychological resistance level of $2,000 and preserved it as its newly found support. Meanwhile, its runner-up Binance Coin, or BNB, climbed to an all-time high of $388 throughout the Tuesday session.
As an outcome, the Bitcoin Dominance Index, which measures bitcoin’s market cap against altcoins, fell to its lowest level in 2 years.
Bitcoin Dominance Index strikes April 2019 low. Source: BTC.D on TradingView.com Mr. Moe hinted that an active capital inflow into altcoins would sap bitcoin’s appeal in the short term. On the other hand, the expert likewise noted that BTC/USD’s risks of breaking bearish on its 9-weekly moving typical wave would increase its direct exposure to the 20-weekly moving average, which presently sits below $40,000.
He presented evidence to support the “blowoff top” theory– a set of fractals that showed bitcoin preserving its bullish bias as long as it maintained the 9-WMA wave as assistance.
< img aria-describedby="caption-attachment-148350" loading="lazy" class="size-large wp-image-148350" src="https://bitcoinist.com/wp-content/uploads/2021/04/EyKulSlW8AA2g-S-980x479.jpeg" alt="Bitcoin has actually not lost the 9-WMA assistance throughout 2020/2021. Source: BTCUSD on TradingView.com
” width=”980″ height=”479″/ > Bitcoin has not lost the 9-WMA assistance throughout 2020/2021. Source: BTCUSD on TradingView.com In general, for Mr. Moe, the indications were enough to go long on Bitcoin.