Top Trader Issues Bitcoin Alert, Warns BTC May Witness $100,000,000,000 in Cascading Long Liquidations
A closely followed crypto trader issues a warning to Bitcoin holders, saying that BTC could see a cascade of long liquidations in the near future.
Justin Bennett tells his 111,300 Twitter followers that he thinks Bitcoin is likely trading in an expanding wedge pattern and that it could correct to around $20,000 after hitting the diagonal resistance of the formation.
“A little higher than I thought we might see, but I still think we’ll get the pullback from BTC.
Monkeys gonna monkey.”
Bennett too notes that billions of dollars worth of long positions are waiting to be liquidated below $20,800, suggesting that market makers may drive the price of Bitcoin down to enter deep liquidity territory.
“For over $100 billion (yes, billion) worth BTC longs left untouched at $20,800. What could that mean?”
While Bennett sees a significant corrective move for Bitcoin, fellow analyst Rekt believes that BTC could be preparing for a major breakout on the monthly time frame.
“Looking forward to the next few months for BTC.”
Looking at the trader’s chart, he seems to suggest that BTC may mirror the price action of late 2014 and early 2019. In both cases, Bitcoin broke out of a descending triangle pattern before eventually taking out key diagonal resistance.
In the short term, Rekt predicts that Bitcoin may retest resistance at around $23,300 before continuing its current uptrend.
“BTC performed a successful retest of the confluent resistance area each day [chart].
That said, there could still be another dip in the same area after a weekly close.
That would make for a healthy technical retest setup, but this time on a weekly basis [timeframe].”
At the time of writing, Bitcoin is trading at $24,711, a fractional increase on the day.
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Featured image: Shutterstock/Liu zishan
