Bitcoin (BTC) continues to show bullish sentiment and maintains its position above the $50,000 mark as the market anticipates a possible push towards a new record high. Despite the optimistic market conditions, uncertainty remains about the digital asset's next trajectory.
In this regard, in an interview with David Lin published on February 18, cryptocurrency trading expert Gareth Soloway suggested that Bitcoin may see a decline and drew parallels with the stock market.
According to Soloway, amid bullish conditions, Bitcoin could retest $30,000 if the stock market experiences a correction of between 20 and 30%. He views this potential new Bitcoin position as a “line in the sand” and views it as an opportunity for accumulation.
This perspective is consistent with Soloway's broader thesis that Bitcoin tends to behave as a risk asset and could naturally be subject to sell-offs during times of general market decline.
“My main line in the sand is the $30,000 to $32,000 mark. So if we can get back there, I'll be accumulating pretty heavily. <…> My thesis is that if we see a 20 to 30 percent correction in the stock market, we need to talk about Bitcoin possibly falling back to $30,000 to $32,000,” he said.
Additionally, Soloway highlighted the excitement in the market, drawing parallels between the current sentiment on social media and behavior during the Bitcoin market's previous peak at $69,000.
He expressed concern about a prevailing attitude reminiscent of stock market bubbles, where speculative behavior leads to the belief that every investment decision is a profitable decision.
There is a possibility that Bitcoin will hit a record high again
At the same time, while Soloway expected a price decline, he dismissed the possibility that Bitcoin could reclaim its last record high of nearly $69,000 before a possible correction. However, he acknowledged that there are fundamental, long-term reasons to be bullish on Bitcoin.
The expert also commented on the drivers of the recent Bitcoin rally. Despite the recent increase, Soloway believes that the rally is no longer solely due to the spot exchange traded fund (ETF) or the upcoming halving.
Instead, he pointed to broader market dynamics and emphasized the role of money and risk assets in Bitcoin's recent gains.
It is worth noting that Soloway joins other market participants who believe that Bitcoin has the potential to correct. For example, as Finbold reported, crypto trading expert Alan Santana suggested that Bitcoin may be facing a “rapid, sudden and sharp” decline based on current technical indicators.
Bitcoin price analysis
At press time, Bitcoin was trading at $51,669, up nearly 1% daily. The first cryptocurrency is up almost 8% on the weekly chart.
Bitcoin seven-day price chart. Source: Finbold
In technical analysis, Bitcoin is currently dominated by bullish sentiments. A summary of one-day indicators retrieved from TradingView agrees with the “buy” signal at 10. Moving averages signal a “strong buy” at 13, while oscillators recommend a “neutral” stance at 9.
Bitcoin technical analysis. Source: TradingView
Meanwhile, Bitcoin bulls are hoping the asset's value stays above the $50,000 mark as this is crucial for the cryptocurrency to reach a new all-time high.
Disclaimer: The content of this website should not be considered investment advice. Investing is speculative. When you invest, your capital is at risk.
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