Trader suggests its time to short as Bitcoin's price parabola breaks

11 May, 2019
by Richard Allen
Analysis
Trader suggests its time to short as Bitcoin's price parabola breaks

Bitcoin’s impressive price performance over the last 48 hours has left the market astounded as the king of cryptocurrencies has continued its steep ascent despite powerful resistance and a string of bad news. While many traders may view this as an opportunity to long BTC, one trader suggests otherwise.

Since Bitcoin’s unexpected surge on April 1 kicked off Bitcoin’s ongoing parabolic performance, crypto trader Livercoin suggests the parabola is now broken and we are overdue for a pullback.

Bitcoin is up by around 88% on a year-to-date base and has continued its rally even in the face of Tether FUD and the Binance hack, leading many to believe the start of crypto summer is on its way.

However, such impressive price action can’t last forever. As we saw during the 2017 bull run, the parabolic trend line that had been supporting Bitcoin’s progress has now been broken.

While this hasn’t had any notable effect on the market at the time of writing, some analysts are expecting Bitcoin’s price to take a hit sooner or later. Most traders are eyeing a dip back to $6,000 as the best case scenario, while others suggest $5,800 or $5,500 are more likely, NewsBTC reports. As Peter Brandt notes, assets that have gone parabolic and then broken generally retrace as much as 80% of the initial advance.

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Read more about: Bitcoin (BTC)

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