Following its recent crash over the weekend, the Bitcoin price appears to be finding some stability as market sentiment shifts positively once more. Yet, this has done little to quell the bearish outlook that has surfaced after the October 10 liquidation event. Contrary to expectations of a recovery bounce that could propel the Bitcoin price to new all-time highs, crypto expert MMBTrader has identified what they term the ‘Whale Buy Zone’ for acquiring ‘cheap’ Bitcoin.
Anticipate Bitcoin Price Dipping Below $90,000
At present, the Bitcoin price remains above $100,000, maintaining this critical psychological threshold even amidst the recent fluctuations that have impacted the crypto market. This represents a decline of over 10% from the all-time high of $126,000 achieved in early October.
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Despite the price drop below $108,000, crypto analyst MMBTrader suggests that now may not be an ideal moment to purchase the cryptocurrency. They recommend that investors wait until the price reaches levels that are attractive to whales, specifically below $90,000, and potentially as low as $87,000 before support is confirmed.
This viewpoint is based on the observation that the Bitcoin price will likely hover around the 0.38 and 0.5 Fibonacci levels, where historical corrections have typically concluded. From this juncture, the price is expected to ascend, fueled by whale purchases enhancing its momentum.
Newer traders entering the market are predicted to panic and offload their tokens, incurring losses between 15% and 40% before exiting the market. Subsequently, the Bitcoin price is anticipated to rise following the departure of these weaker hands, with the analyst projecting a new all-time high in the range of $130,000-$140,000.
Once this occurs, former traders who sold are likely to begin FOMO buying again, causing the cycle to repeat. In this scenario, investors who secured their positions below $90,000 will see substantial gains on their investments.
Maintain Focus and Follow Your Strategy
In light of these developments, the crypto analyst encourages investors to adhere to their strategies and implement strict risk management while trading cryptocurrencies. The Bitcoin price frequently reacts to market news, but predicting the direction of the price based on each piece of news can be challenging; hence, it’s advisable to consistently follow a pre-established strategy and set clear stop-loss and take-profit levels.
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MMBTrader also warns against panic buying and selling due to market news. Instead, prioritize maintaining a positive mindset regardless of the trade outcome. This mindset is crucial whether a trade results in a gain or a loss, as staying level-headed is essential.
Featured image from Dall.E, chart from TradingView.com
