Bitcoin (BTC) stayed above $ 13,000 on October 27, but an analyst warned that the largest cryptocurrency would make a major correction.
In a tweet on Tuesday, network analyst Cole Garner predicted that BTC / USD could soon end its bullish rally and suddenly fall into a Hell Candle event on the daily chart.
Yarns for traders: “Pay attention to yourself”
Garner looked at the Bitcoin Liquidity Index (BLX) from Brave New Coin, which is a calculator designed to assess the entry and exit points for liquidity, which led to sharply bearish results.
After reaching $ 13,370 over the weekend, Bitcoin is ready to lose liquidity for investors in line with the events that followed back to $ 10K and $ 12K this year.
In each case, a specific price point triggered a sale followed by a slow return to higher levels.
“A hell of a light is approaching you. Look at your ass. ”
According to Garner’s chart, the potential bottom for net price losses this time is $ 11,300, 15.4% below the local peak.
Secretariat for research on mineral derivatives
Bitcoin held $ 13,000 in broad support for almost a week, with only brief falls below the level that counteracted the general atmosphere in the bull market.
As Cointelegraph reports, network fundamentals are beginning to decline from full-time highs, which may indicate a short-term change in mining and associated price pressures.
However, the general consensus among network members is that this is a mature market, and retail sales are still higher than just two years ago. Therefore, in order to manage risk, miners must resort to hashrate derivatives as the industry becomes larger and more competitive.
She is currently looking for this new form of derivative product at Fidelity, a company known for its Bitcoin support.
“We are investigating and testing a number of new challenges and segmenting derivative contracts to see how miners can incorporate contracts into strategies to reduce the risk of unexpected increases in network fragmentation rates,” confirms an update on the company’s website. published Monday. …
Research and development is carried out by a specialized subsidiary of the Fidelity Center for Applied Technology.