A closely watched trader warns that a sharp sell-off for Bitcoin (BTC) is likely ahead after the crypto king recovered about 100% from November 2022 lows.
Pseudonymous analyst Cantering Clark tells his 173,200 Twitter followers that Bitcoin doesn’t seem optimistic to him.
According to the analyst, Bitcoin is recent ascent above $30,000 is likely a bulltrap before a mean reversion, or a correction that usually happens after an extreme move to the upside.
“I think we’re just luring longs here and after this monthly close, we’re seeing a deeper mean reversion. I think people are starting to think that spot buying only means up. I didn’t know spot buyers don’t have a sell button?”
Cantering Clark continues participation that despite the stock market’s recent strength, Bitcoin has struggled to print profits. The trader also mentions the meeting of the Federal Open Market Committee (FOMC) scheduled for this week.
Traders eagerly await the results of the FOMC meeting as this is when the Fed will announce whether it will continue raising rates or pause.
“-Bitcoin at a huge level 100% of the lows
– less upside gains than stocks lately
-End of April
-FOMC week
– Foam the farthest end of the risk curve
What do you think is next?”
While Cantering Clark is bearish about Bitcoin’s near-term price action, he say BTC remains the best performing asset so far this year.
“Before anyone comes in, I’m talking locally. I’m not saying Bitcoin isn’t looking bullish so far this year. It has risen more than anything else that is even remotely in the same profile in terms of asset size and liquidity.
At the time of writing, BTC is trading at USD 28,032, down more than 4% in the past day.
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