The price of Bitcoin may never return to its previous highs, if this year’s lows are broken, according to Jeff deGraaf, a well-renowned technical analyst. This was reported by CNBC, which quotes one of his reports for clients.
Jeff deGraaf is the founder and Chairman of Renaissance Macro Research, an independent advisory firm. He is a Chartered Market Technician (CMT) and Chartered Financial Analyst (CFA), designations given by two of the most prestigious international organizations providing such certificates. Even more impressively, he has over two decades’ worth of experience with technical analysis and has received multiple awards for his work.
DeGraaf would even recommend short-selling the oldest cryptocurrency, presuming the last few days’ dynamics are extended. The note reads:
“Parabolic moves are notoriously dangerous for short‐sellers … Usually, a top develops that often appears as a descending triangle over months, with reduced volatility and little [fanfare], […] Once the top is complete on the support violation, the security in question can often be considered permanently impaired or even 'game‐over' “
The eye-catching words, “game over”, obviously refer to potential panic selling which may occur if the support is broken. In order to illustrate the levels deGraaf is referring to, we have to go to the weekly chart:
Charting by TradingView
We can generally define the support zone as being around $5,775. For a short-term oriented update, be sure to check our weekly recap, the CV Market Watch™.
Nothing in this article is to be construed as investment advice. Neither the author nor the publication assumes any responsibility or liability for any investments, profits, or losses made as a result of this information.