In this passage, cryptocurrency trading guru Gareth Soloway alluded to the possibility of a Bitcoin decline in an interview with David Lin that was released on February 18. He made comparisons to the stock market.
Soloway thinks that given the current bullish environment, Bitcoin may retest the $30,000 level if the stock market experiences a 20%–30% correction. He sees this possible new Bitcoin position as an opportunity for accumulation and regards it as a "line in the sand."
This viewpoint supports Soloway's more general theory that, in times of general market collapse, Bitcoin tends to behave like a risk asset and may naturally experience sell-offs.
“My major line in the sand is that $30,000 to $32,000 level, so if we can retrace there I’ll start accumulating pretty heavily. <…> My thesis is that if we see a 20-30 % correction in the stock market, then have to talk about Bitcoin possibly coming back to $30,000 to $32,000,” he said.
Furthermore, Soloway drew comparisons between the conduct observed during the previous Bitcoin market peak at $69,000 and the current emotion on social media, all the while emphasizing the frothiness in the market.
He voiced concerns about a pervasive mindset that was reminiscent of stock market bubbles, in which speculation breeds confidence that every investment decision is a profitable one.
Possibility of Bitcoin reclaiming record high
Simultaneously, Soloway predicted a decline in price but ruled out the prospect of Bitcoin hitting its previous high of around $69,000 before any possible correction. He did concede, though, that there are solid, long-term reasons to be optimistic about Bitcoin.
The expert also discussed the factors that led to the most recent Bitcoin surge. Even with the recent uptick, Soloway thinks the spot exchange-traded fund (ETF) and the impending halving aren't the only factors fueling the increase.
Rather, he emphasized the importance of money and risk assets in driving Bitcoin's recent increases by pointing to larger market factors.
The expert also discussed the factors that led to the most recent Bitcoin surge. Even with the recent uptick, Soloway thinks the spot exchange-traded fund (ETF) and the impending halving aren't the only factors fueling the increase.
Rather, he emphasized the importance of money and risk assets in driving Bitcoin's recent increases by pointing to larger market factors.
Notably, Soloway has joined the group of market participants who think there is a chance that the price of Bitcoin will rise. For example, according to Finbold, cryptocurrency trader Alan Santana predicted that Bitcoin may see a "fast, sudden, and strong" decline based on current technical indicators.
Bitcoin price analysis
Notably, Soloway has joined the group of market participants who think there is a chance that the price of Bitcoin will rise. For example, according to Finbold, cryptocurrency trader Alan Santana predicted that Bitcoin may see a "fast, sudden, and strong" decline based on current technical indicators.
Bullish sentiments are currently dominating technical analysis of Bitcoin. The one-day gauge summary that was obtained from TradingView coincides with the 'buy' signal at 10. At 13, moving averages indicate a "strong buy," while at 9, oscillators suggest a "neutral" position.
Bulls in Bitcoin are hoping that the commodity keeps its value above $50,000 in the interim since doing so will enable the cryptocurrency to reach a new all-time high.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
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