Here’s Why a Bitcoin Dip Below $20,000 This Week Would Be Vastly Different From Last Week’s Move: Economist Alex Krüger
One economist thinks if Bitcoin (BTC) dips below $20,000 this week, it will be fundamentally different in nature than last week’s price plunge.
Alex Krüger tells his 137,500 Twitter followers the number of stop orders under $20,000 is “very small relative to what it was before.”
“Many traders like me shorted $20,000 and won’t be shorting $20,000 again as the reduced presence of stops makes shorting much less attractive.”
Traders typically enter stop-loss limits when executing a trade, instructing the exchange to automatically sell their positions once the asset reaches a certain price level.
Bitcoin is trading for $20,603.37 at time of writing. The top-ranked crypto asset by market cap is up more than 1.4% in the past 24 hours but down more than 2.1% in the past seven days. It remains more than 70% down from its all-time high.
Explains Krüger,
“The big difference for BTC and ETH between now and last week is that now a dip below $20,000/$1,000 would be for many buying opportunities, while last week a dip below $20,000/$1,000 were *strictly* for selling (panic sellers, forced sellers and breakout sellers).”
The economist predicts Bitcoin’s price will “run up a lot now,” which will punish panic sellers.
“I want to see a fast reaction up from here next couple of days. The best rallies are those that don’t give laggards an entry.
Entering now gives traders a 2:1, 3:1 risk reward.”
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The post Here’s Why a Bitcoin Dip Below $20,000 This Week Would Be Vastly Different From Last Week’s Move: Economist Alex Krüger appeared first on The Daily Hodl.
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Author: Daily Hodl Staff
