A widely followed crypto strategist is putting traders on notice as he predicts that Bitcoin and the entire digital asset markets are poised for a corrective move.
The trader known in the industry as Credible tells his 247,700 followers that he sees Bitcoin struggling to continue its uptrend just as traders turn bullish on the largest cryptocurrency.
“Funding flipping positive while price stagnates at major HTF (high timeframe) supply. Guess what is most likely to happen next. BTC.”
A positive funding rate indicates that traders are heavily betting on Bitcoin to continue rallying, suggesting an overly bullish sentiment. Looking at the trader’s chart, the last time BTC’s funding turned positive was in September just before Bitcoin dropped from $52,000 to a low of $40,000.
Credible posits that a positive funding along with BTC trading at a key resistance area could be a recipe for a retracement.
The crypto strategist also predicts that Bitcoin will drop to support around $50,000 and drag the rest of the markets along with it.
“What are you trying to accomplish by longing resistance [anonymous]? Caution my friends, expecting a correction across the board soon. Alts will likely get hit harder than BTC here.“
Although Credible is short-term bearish, he believes the crypto markets will recover once the pullback is over.
“Believe me, you will want to be there to pick up the pieces. Find your favorite altcoins and start planning so when the drop comes you can take advantage of the sale.”