Top Trader Gives Bitcoin Warning, Warns BTC May See Extended Liquidations Totaling hundred billion

A well-following cryptocurrency trader is giving a warning to Bitcoin investors, stating that BTC might soon see a cascade of lengthy liquidations.

Justin Bennett informs his 111,300 Twitter followers that he thinks Bitcoin is trading in an expanding wedge pattern and might fall to about $20,000 after reaching the diagonal resistance of the formation.

“A little higher than I anticipated, but I still anticipate a fall from BTC.” Bennett also adds that billions of dollars worth of long positions are waiting to be liquidated below $20,800, indicating that market makers might force the price of Bitcoin lower in order to access the region of high liquidity.

“At $20,800, over $100 billion (yes, billion) in Bitcoin longs remained undisturbed. What may that indicate?

Although Bennett anticipates a substantial corrective move for Bitcoin, Rekt feels that BTC might be preparing for a large monthly breakthrough.

“I anticipate the next several months for BTC.” According to the trader’s chart, Bitcoin’s price activity may be resembling that of late 2014 and early 2019 at now. In both cases, Bitcoin breached a descending triangular pattern before overcoming a crucial diagonal obstacle.

Rekt forecasts that Bitcoin might revisit resistance at $23,300 in the near future before continuing its current ascent.

“Bitcoin retested the confluent resistance region on the daily [chart] with success.” After the weekly close, there might yet be another decline in the same region.

This would indicate a good technical retest setup on a weekly time period.” At the time of writing, the price of Bitcoin is $24,711, a marginal gain over the previous day.

Also Read: Rich Dad Author Robert Kiyosaki Replies To Charlie Munger’s Request To Ban Bitcoin