A popular crypto analyst says Bitcoin is primed for a major correction, while XRP is on its way toward a new price range.
The pseudonymous trader known in the industry as Pentoshi predicts BTC is about to tumble to the low $20,000 range.
Pentoshi says the timing of Bitcoin’s upward movements suggests a reversal is inbound.
“The time and distance of each BTC move gets smaller. Less consolidation and less upwards movement.
Markets can be like a pendulum and this will swing the other way. Theory remains unchanged. We will see low $20,000’s.”
The analyst also highlights data from investment firm, Grayscale, indicating that their Bitcoin and Ethereum assets under management have dipped slightly in the past few days. Pentoshi says the data supports his theory that the crypto king has hit a top.
“To me this signifies a local top, and makes sense from a technical perspective using fibs. I believe we get a 15-30% pullback before making new ATH’s. A bullish pullback per se.”
Pentoshi adds that in trading Bitcoin, capturing the majority of the asset’s large movements is the goal, not predicting BTC’s tops or bottoms.
“It’s not about capturing the bottoms or tops of the market but 70-80% of the move.
Nothing has made me more money than understanding the power of compounding in saying that.”
In the long run, the trader says Bitcoin’s bull cycle is not over yet, but as the new year begins Pentoshi believes altcoins hold the better risk-to-reward ratio.
“At this point it’s undeniable to me that alts have more upside in 21 than BTC.”
As for XRP, Pentoshi says the crypto asset is still searching for a bottom as Ripple prepares to begin a legal battle with the U.S. Securities and Exchange Commission (SEC). The analyst expects XRP to lose roughly half of its remaining value in the near future.
“In my opinion the dust will settle in the next few weeks/months somewhere in-between $0.07-$0.12
Liquidity will dry up. ODL can’t be used on Bitstamp. More exchanges will halt trading.
Larger players will continue to de-risk and get rid of excess inventory. Just the way I see it.”
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Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
Featured Image: Shutterstock/Art Furnace
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