Tyler Jenks caused a stir on Twitter yesterday claiming he believes Bitcoin is heading back lower despite recent bullish price action.
The full tweet quoted from Tyler Jenks stated;
“I have not commented on Bitcoin since we broke up through the $4,000-4,200 resistance zone. I believe we are headed back down to that zone and it will not hold. New lows coming. Target of $1,000 unchanged.”
Now despite Bitcoin sitting around the $5,000 price level, is it unfathomable to suggest Bitcoin could plummet to the lows of $1,000?
Would that then suggest that Bitcoin’s meteoric rise over the last few years could lead to an abrupt end?
Very unlikely.
But before I get into that, how was this tweet met amongst the Crypto Twitter community?
The responses were unsurprisingly met with some pessimism and disagreement with the following replies;
- “I think this is poor form… to just reiterate your bearish view on a down day for BTC. Why not on up days also. It’s not like you’re trying to scare the market right?? Lol”
- “You have been saying this for over a year now”
Considering the majority of Cryptocurrency investors right now may disagree with this statement, the claim is not beyond the realm of belief.
Tyler Jenks has over 40 years of experience in financial markets and has been one of the early adopters of Bitcoin, analyzing previous cycles and has witnessed the tumultuous volatility to suggest his tweet does hold weight.
Bitcoin Key Zones – Weekly Timeframe
BTC is currently trading at $5,088 against the USD with a current market cap of around $89 billion.
The weekly time frame could indicate this could significantly reduce if we are to meet these key zones highlighted.
During the Bull Run in 2017 Bitcoin had slight pullbacks to key zones around $1,000 and $2500-$3000. These levels are still yet to be retested.
I believe these key levels may be retested considering we are yet to test below $3,000 – Bitcoin came very close in December 2018.
The current bullish momentum could suggest we may be in for a further run-up in price before a final push down to the levels of $3,000 and beyond.
Investors want to have their cake & eat it?
Which brings me to my final point.
We all enjoy the substantial gains when Bitcoin & Cryptocurrencies are on the up in a bull market and proving a great return on invest (ROI).
But we’re not equally accepting of the huge volatility when the market reverses in a bear market?
Can’t have it both ways, unfortunately!
