Bitcoin’s parabolic advance has finally come to an end, with bulls losing their footing following the recent break below $40,000
Its macro parabola could very well still be valid and in play, but it will require a firm and swift trend reversal in the near-term
The entire market is reeling lower in tandem with Bitcoin, and investors widely believe that the ongoing descent could extend further
This comes as one prominent Bitcoin investor from Guggenheim Partners notes that he is taking profits off the table
Other prominent investors who watched their investment in Bitcoin explode over the past few weeks may be doing the same
Bitcoin and the entire crypto market have been caught in the throes of immense turbulence throughout the past few days.
Bulls have been unable to gain any ground against bears as Bitcoin, Ethereum, and most other altcoins all plunge lower.
Where the market trends in the mid-term should depend largely on whether or not BTC can find strong support at $30,000. A break below this level could prove to be dire and spark a massive selloff.
One prominent investor at Guggenheim who previously forecasted $400,000 per Bitcoin is now taking profits off the table, noting that BTC’s short-term rally has grown incredibly over-extended.
Bitcoin Craters as Selling Pressure Ramps Up
Bitcoin has cratered from its $43,000 highs, and the cryptocurrency appears to be on the cusp of facing further losses.
At the time of writing, the benchmark cryptocurrency is trading down nearly 20% at its current price of $31,000. This marks a notable decline from recent highs of over $40,000.
$30,000 will likely prove to be a strong support level for the crypto, making it imperative that bulls guard against any strong dip below this level.
This Prominent Investor Announced He Is Selling BTC
Scott Minerd from Guggenheim Partners is known for his recent statement on CNBC regarding Bitcoin one day reaching $400,000.
It doesn’t appear that he believes this is a near-term possibility, as he is now noting that he is taking money off the table as BTC’s rally has grown “unsustainable.”
“Bitcoin’s parabolic rise is unsustainable in the near term. Vulnerable to a setback. The target technical upside of $35,000 has been exceeded. Time to take some money off the table.”
The coming few days should shine some light on Bitcoin’s outlook, as its ultimate response to $30,000 will likely determine where it trends in the days and weeks ahead.
Featured image from Unsplash.
Price data from TradingView.
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