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Bitcoin’s surge to all-time highs above $ 23,000 on Thursday hits a lot of ballyhoo on Wall Street, but at least one technical expert is warning that the popular digital currency may be poised for a pullback.
Tom DeMark says based on his timing patterns, the world’s most important cryptocurrency is expected to retreat soon.
Lily: Stock timing expert DeMark ‘confident’ S&P 500 jumps 5% in next 2 weeks
“While it seems treacherous to take such a stand, here is what our combined timing models suggest about Bitcoin at the moment,” he said, highlighting what he described as “pending ‘uptrend exhaustion’, which could play out Thursday or Friday, initiating a downward movement for the nascent asset.
“Previous examples that this long-range model has spoken to include the precise high of December 18, 2017, the precise low day of December 14, 2018, and then the precise high of June 26, 2019,” DeMark wrote.
He said that every warning for Bitcoin’s BTCUSD,
the fallback was the precise day high or low.
DeMark is a technical analyst who uses market timing metrics to determine when to buy and when to sell assets.
Leading analysts say bitcoin’s decline from its June 26, 2019 high to its March 16 low was 9,430 points, adding that “if you add 9,430 points to the June 26, 2019 high, it is projecting up to 23,288 which is the area. in which the current market is trading. “
Symbolik.com
“Obviously there is no certainty in the forecast business and it is often prudent to wait for confirmation of the completion of a trend rather than making a bold forecast,” he said. . “Nonetheless, waiting for a close below the close 4 or 5 days earlier and following lower the next day would sacrifice an opportunity.”
DeMark has used a mapping service, called Symbolik, founded by his son TJ DeMark, which promises to deliver cloud-based, institutional-grade analytical tools to make its Bitcoin appeal.
DeMark said bitcoin could retreat between around 5.5% and 11%, but the decline could also be steeper. He also recognizes that the asset could perpetuate its gains and ignore the exhaustion signal, if investors continue to cram into the asset.
See also: As Bitcoin Breaks New Records, These Market Watchers See $ 250,000 And Even $ 400,000 On The Horizon
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