Tony “The Bull” Severino has warned the crypto community against comparing Bitcoin’s current performance to its 2017 bull Market. He highlights that the stochastic oscillator, a key indicator, shows Bitcoin is in a different phase, hinting that it might be heading for a bearish correction rather than a bullish run. Currently, Bitcoin is trading between $81,000 and $84,500, and signs suggest it could be peaking. Severino points out that while Bitcoin has held above $80,000 recently, its struggle for strong buying momentum raises concerns about its future movement. As Bitcoin remains volatile amid Market pressures, investors should approach cautiously, as its behavior now may resemble the start of the 2018 downturn rather than the bullish trends of 2017.
Tony “The Bull” Severino Sounds Alarm on Bitcoin’s Future
In a recent statement, Tony “The Bull” Severino has urged the crypto community to be cautious about drawing parallels between today’s Bitcoin Market and the historic bull run of 2017. As Bitcoin currently flounders between $81,000 and $84,500, Severino warns that a significant technical indicator hints at a potential downturn rather than an upward spike.
Stochastic Oscillator Indicates Diverging Trends
Severino’s primary concern hinges on the stochastic oscillator, a valuable tool for analysts assessing whether Bitcoin is currently overbought or oversold. This momentum indicator examines Bitcoin’s price movements over the longer term, revealing patterns from as far back as 2013. When applied to the monthly timeframe, the stochastic oscillator shows that Bitcoin has been on a downtrend similar to its trajectory in 2017, raising alarm bells for many investors.
While some traders believe a rebound is imminent, the oscillator’s current reading suggests otherwise. At about 60, this level mirrors what occurred just before Bitcoin entered a severe correction in 2018. Back then, the cryptocurrency experienced a dramatic 49% drop within just one month.
Potential Risks in Current Market Dynamics
Severino cautions that those who see similarities between Bitcoin’s current state and the 2017 bull Market may be misunderstood. He argues that recent price actions indicate a potential shift into a bearish phase, not a continuation of bullish momentum.
Current Market Conditions
Furthermore, Bitcoin’s recent price fluctuations demonstrate weak buying pressure and a slowdown in transactions among short-term holders. On-chain data suggests that many traders have paused their buying activity, which could have alarming implications for any bullish outlook.
Despite these challenges, Bitcoin managed to stay above the crucial $80,000 mark, even amidst volatility caused by global Market factors, including economic announcements from the US government. This resilience has led to speculation that Bitcoin might be starting to decouple from traditional stock markets, indicated by its recovery back above $83,000.
As of now, Bitcoin is trading at approximately $83,693, and Market watchers are closely monitoring its next moves.
Stay ahead of the curve by keeping an eye on these trends as the cryptocurrency landscape evolves.
Featured image from Pexels, chart from TradingView.
What does the expert warn about comparing BTC to its 2017 movements?
The expert suggests that investors should not compare Bitcoin now to its situation in 2017. The Market conditions and overall economic environment are quite different today.
Why is it risky to make these comparisons?
Making these comparisons can lead to poor investment choices. Investors might expect Bitcoin to behave in the same way, which can create unrealistic expectations.
What are the current Market conditions for Bitcoin?
Today’s Market for Bitcoin is influenced by various factors, including regulations, adoption rates, and global economic changes. These elements are not the same as they were in 2017.
What should investors focus on instead?
Investors should focus on current trends and data rather than past performance. Understanding Market signals and recent news can provide better guidance.
How can investors stay updated on Bitcoin?
Investors can stay informed by following reliable financial news sources, joining online communities, and paying attention to expert analyses. This helps them make more informed decisions.
