Bitcoin (BTC) is trading above $47,000 and is behaving exactly as Finbold reported on January 27th. Now, BTC could fall below $40,000 under certain conditions for a sell-off event.
Interestingly, this expected bull rise to around $48,000 was just the first part of a broader analysis by CrypNuevo. The accurate professional trader has predicted that Bitcoin will look for lower prices in March.
If the next moves continue to take hold, Bitcoin could fall to the $36,500 zone, according to CrypNuevo analysis. The leading cryptocurrency will find relevant support in this area and may bounce back immediately.
Before that happens, the analyst says BTC can still aim for the top of the wick near $49,000. This would require consolidation around $47,000 over the weekend.
BTC/USD daily price chart. Source: CrypNuevo
Bitcoin sale declared invalid
However, trading cryptocurrencies is uncertain and in the right scenario, everything can change quickly. This is why solid technical analysis features invalidation conditions that signal a trend reversal to the trader.
In a YouTube video published on February 9, CrypNuevo also highlights the invalidation points of Bitcoin's expected sell-off to $36,500. Specifically, he says there is no significant price resistance above $50,000.
Therefore, the sell-off analysis will be invalid if BTC manages to reach and overcome the $50,000 region with sufficient volume. In this context, a quick rise to $60,000 will be in play, offering a good risk-reward ratio for investors.
“Of course it’s a game of possibilities. That's more possible, but I don't agree with that idea; I just look at the charts.”
– CrypNuevo
From a fundamental perspective, further developments surrounding Bitcoin spot ETFs could fuel this devaluation. Additionally, the April block subsidy halving is also a bullish event overall.
All in all, investors should always trade cautiously and follow Bitcoin-related news to make profitable decisions.
Disclaimer: The content of this website should not be considered investment advice. Investing is speculative. When you invest, your capital is at risk.
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