Crypto Analyst Warns Against Bitcoin Buying Amid Potential Market Correction
- A crypto analyst cautions against buying Bitcoin at new highs, suggesting a potential crash to $40,000.
- The analyst highlights the $83,000-$88,000 range as a significant resistance zone with substantial sell pressure.
- Key resistance levels identified include $83,435 (0.618 Fib), $84,647 (0.65 Fib), and $89,797 (0.786 Fib).
- Average cost basis for US Spot Bitcoin ETF holders is around $87,830, indicating unrealized losses.
- Short-term holder cost basis is approximately $80,100, often marking local tops when exceeded.
The analyst warns that Bitcoin’s current price rally might be a distribution phase rather than the end of the bear market. He suggests that traders avoid buying around $85,000 due to potential heavy sell pressure from investors seeking to exit at breakeven levels.
He advises waiting until October for more favorable long-term buying opportunities as Bitcoin may experience further corrections before establishing a new bull trend. (Source)
