A professional equities and cryptocurrency trader who claimed to have worked at a Fortune 500 company, has just dropped a hint for investors and other users of Bitcoin cryptocurrency on the best time to buy BTC as halving draws closers.
Analyst Eric Choe who recently predicted that Bitcoin may plummet to below $1,000 after halving said after Bitcoin went as high as $9,200, the cryptocurrency fell through below $9K, describing it as a bearish view in the intraday market. He, however, said the readjustment is necessary as Bitcoin rallied up than expected.
He explained that when Bitcoin fell to around $4,000 in March, a higher low was printed. He further said that the 50.0% and 61.80 Fibonacci levels found around $10,500 and $9,275 respectively are tough resistance point for Bitcoin on a daily timeframe.
Choe said that while Bitcoin continues to trend higher, it is yet to break the 50.0% line, hence a difficult resistance zone for Bitcoin to breakthrough. He clarified that this is the reason Bitcoin is witnessing stagnation around this point.
The trader claimed that while Bitcoin continues to struggle to surpass this point, a downward move may set in.
Taking the Fibonacci retracement level from the bottom, analyst Choe said if Bitcoin breaks downward, it will find a strong support around $6,000 and $5,000, selecting this point as a perfect buy zone for investors.
While stressing that it would be quite difficult for Bitcoin to break above the $10,500 and $9,275 price levels, the crypto analyst said that a reset would be necessary, and Bitcoin would likely drop to the buying zone as stated above.
He furthered that the $11,500 is around great resistance point investors need to look out for supposing a rebound sets in after the drawback.
On a bullish perspective, Choe said the $8,700 is a high confluence zone. He claimed that the $9,470 point is a strong target zone for the bull. Hence, if Bitcoin manages to exceed this point, we can expect a bullish rally, he concluded.