A pseudonymous crypto trader and analyst is changing his Bitcoin (BTC) outlook as the top cryptocurrency hits $42,000.
The crypto trader, known as Cantering Clark, has changed his neutral-to-bearish stance on Bitcoin in a matter of days as bulls maintain control of the BTC market.
Cantering Clark says Bitcoin continues to flash signs of strength, citing a claim from quantitative crypto trader Sam Trabucco that BTC is poised for another short squeeze.
“BTC seems pretty strong up here, and AlamedaTrabucco alluded to more shorts that could potentially get squeezed.
Might be a mistake to not look at this many days as an outlier indicating strength, rather than likely mean reversion.”
A short squeeze happens when many traders who bet that the asset will go down are abruptly forced to liquidate their positions and buy at higher prices as the market moves against them. The phenomenon sometimes results in the rapid increase of an asset’s value.
Amid the possibility of a short squeeze and BTC’s sustained rise, Cantering Clark unveils his new investment strategy.
“New Clark Investment Mandate – Reaccumulate spot. Trying to buy as much Bitcoin as possible in this range.
Bad news seems to have almost no impact on price anymore, this is telling. No sense in trying to be fancy. The differences in entering here or $35,000 will be negligible.”
The crypto trader adds that the recent lows line up with the lower end of the 20-week moving average, suggesting that Bitcoin might have bottomed out for now.
“Just looking at some trend tools…
That 20 period on the weekly is a really significant line in the sand, and right now it just so happens to line up with the underside of previous lows.”
The trader also predicts that Bitcoin will ignite a rapid ascent to $100,000 once it breaches its all-time high of $64,000.
“Just doing some thinking. $100,000 Bitcoin is just over 50% above the all time high [ATH].
That is going to feel like a heartbeat when we finally break this ATH again.”
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The post Top Trader Flips Bullish on Bitcoin, Says He’s Accumulating As Much BTC As He Can – Here’s Why appeared first on The Daily Hodl.
source https://dailyhodl.com/2021/08/01/top-trader-flips-bullish-on-bitcoin-says-hes-accumulating-as-much-btc-as-he-can-heres-why/