First Real Bitcoin Crash Could Occur At $16,000: Analyst Warns

The first real bitcoin crash could happen once the benchmark crypto reaches the $16,000 level while eyeing the potential resistance level for weeks. In today’s Bitcoin news, we are taking a closer look at the analysis.

The flagship cryptocurrency experienced a huge sell-off right after touching the three-year high. The traders decided to take their profits which showed a consensual agreement that placed new Long entries at $16,000 which is considered a risky trade. As usual, BTC/USD failed to close above the level that led the rate lower in the successive hourly sessions as the pair was trading at $15,782. It then ceased all attempts by the bears to move the price below $15,446 which showed a higher demand for Bitcoin around $15,000 which should lead the price back towards testing the $16,000 resistance level.

However, this doesn’t mean that bitcoin will keep rising forever after it hits $16,000 as one analyst opined.  The trader operating under the name “Loma” stated that BTC will experience its first real bitcoin crash despite staying in the bull market. The analyst anticipated that the cryptocurrency will break above $16,000 while eyeing an extended move towards the $16,400 and the $16,700 region. it would also suffer its first downside correction after few months of relentless upside moves:

 “The new gameplan is we’re going to perform an elaborate upwards chop that rekts [long timeframe] traders,” he explained. “Push it past the general consensus bullish target — say $16,400-16,700 — then we have our first real crash that reminds everyone the destructive nature of BTC even in a bull [market].”

The statements matched what Vays, the crypto-focused financial analyst said about BTC and its imminent price pullbacks. The only real difference is that the target was set at $20,000 which was the record target to this date. Bearish warnings emerged out of the BTC Derivatives market. the data by DataMish.com shows a strong imbalance between open Long and Short positions. As of press time, about 76% of traders were long BTC while the rest were short. This puts the market at risk of massive long liquidations if the price trend reverses.

This $BTC $15k -15.5k consolidation is a good thing, the longer it consolidates the higher the chances of for a breakout higher. But #Bitcoin going too far too fast this year (like $20k) would open the possibility of a big correction. See Clip.
Full Video: https://t.co/YWilPeECBJ pic.twitter.com/8nzX6XeJKU

— Tone Vays (@ToneVays) November 11, 2020

The same had happened in March 2020 where the spot-led price crash caught the bulls on the other side of the market. The long liquidations ensued which led the pair rate to reach $3,858. The market was trading within a bullish scenario at that time under a renewed confidence. Many investors started accumulating BTC to protect their portfolio from the aftermath of low-interest rates.