The market has been in some disarray over the last 24 hours due to Bitcoin’s breakdown, yet analyst Crypto Rover sees it as a false breakout that may well herald a return to the 200-day moving average. Such is the nature of the latest price action, with BTC’s future direction once again up for debate and high-stakes trading in the offing.
Massive Liquidations Shake Confidence
Some $1 billion in long positions have been wiped out in the space of a day following the breakdown. It is a figure that has led many investors and traders to rethink their approach to risk management; quite a few are reading the volatility as a precursor to more downside. Crypto Rover says the forced liquidations have stirred up old fears from the market upheaval of a year ago, but he advises watching for any sign of a reversal.
Crypto Rover’s Tactical Moves and Market Outlook
The trader, well known in the community, has made over $1.2 million on a recent long in Bitcoin. In light of the breakdown, he is considering shorts at $82,800 as a hedge, though his bias remains bullish for a mid-term recovery. Should Bitcoin make its way back to the $72,000 area, he considers that a prime spot to put on sizeable swing trades on the long side and take advantage of a reversal.
As for the charts, Crypto Rover has identified a ‘higher-low, higher-low’ pattern on the daily that has appeared before and could be about to do so again, underpinning his case for a rally. He emphasizes the 200-day moving average and would see any move to reclaim it as confirmation the market is recovering.
Key Technical Support and Altcoin Opportunities
Bitcoin is putting important technical levels to the test now, ones that have in the past provided solid support. Traders are well advised to keep an eye on them for a bounce that might turn sentiment around. And it is not all about Bitcoin: with altcoins in oversold territory, there will be ample opportunity to trade in the days ahead. Expect the rest of the crypto market to become more volatile as volume picks up and traders make their moves on a variety of assets.
This article reflects the channel author’s opinion and is not investment advice.
Every call by Crypto Rover and how it played out — in the BuyCrypt bloggers tracker.
Source — Crypto Rover: https://www.youtube.com/watch?v=Ua3GiJ4om8E
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