Crypto Trader Warns of Bitcoin Market Structure Resembling 2018 Plunge
A prominent cryptocurrency trader is warning Bitcoin (BTC) holders that the current market structure of the leading cryptocurrency is eerily similar to its price action before a significant plunge about three years ago.
A well-known pseudonymous analyst, Kaleo took to Twitter to caution his 566,300 followers about Bitcoin’s precarious situation. He notes that BTC is consolidating above a diagonal trendline, which it took out earlier this year.
According to the analyst, this price action is reminiscent of the asset’s movement in early 2020, when it rallied from approximately $6,000 to $10,000 before plummeting to $3,000 in March of the same year.
The analyst acknowledges the current structure of the Bitcoin market as concerning and expresses his hopes for a different outcome. He states, “Please, lord be different this time.”
plz lord be different this time pic.twitter.com/oIkoy1jXIK
— K A L E O (@CryptoKaleo) March 10, 2023
However, Kaleo suggests that BTC bulls may emerge victorious if the trendline remains intact.
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The analyst notes that Bitcoin and the SPX are retesting significant high-timeframe support levels. In his opinion, as long as these levels remain, there is no reason to be overly pessimistic regarding BTC’s price performance.
Both #Bitcoin and $SPX are retesting major HTF support levels.
Imo there’s no reason to be a doomer / incredibly bearish here as long as these hold. pic.twitter.com/culKkGLkmu
— K A L E O (@CryptoKaleo) March 10, 2023
The trader cautions that should the trendline fail to hold, Bitcoin will likely experience a massive sell-off event. Kaleo emphasizes that if the trendline breaks, “we’ll see real capitulation.” Nonetheless, he sees the present situation as an opportunity for investors to take a calculated risk and go long with clearly defined stop-loss orders to the downside and enormous upside potential.
In summary, Kaleo is cautioning Bitcoin holders to be vigilant and take appropriate measures to protect their investments should the trendline break. While alarming, the trader’s assessment of Bitcoin’s current market structure offers investors insight into potential market trends and signals.
Andrey Kunev
Reporter at CoinsPress
Andrey Kunev is a knowledgeable cryptocurrency content creator passionate about the crypto market. With extensive experience in market analysis and investment reporting, Andrey is a valuable asset to the CoinsPress team. As a frequent contributor, he offers insightful and comprehensive coverage of market trends, price fluctuations, and new advancements in cryptocurrency. Whether you're a seasoned investor or just getting started, Andrey's clear and concise writing offers a comprehensive look at the current state of the crypto market and its prospects. Stay up-to-date with CoinsPress's expert analysis and commentary on all things cryptocurrency.
