Bitcoin (BTC) remained above $ 13,000 on October 27, but an analyst warns that the largest cryptocurrency is due to a major correction.
In a tweet On Tuesday, on-chain analyst Cole Garner predicted that BTC / USD may soon end its bull run and suddenly move lower in a “Candle of Hell” event on the daily chart.
Garner to traders: “Look at your ass”
Garner looked at Brave New Coin Bitcoin’s Liquid Coin Index (BLX), a price calculator designed to gauge at which price points liquidity should enter and exit the market, and the result was decidedly bearish.
After its run to $ 13,370 over the weekend, Bitcoin is ripe for losing investor liquidity, in line with the events that followed its return to $ 10,000 and $ 12,000 this year.
Either way, a certain price point triggered a sell off, followed by slow grind to higher levels.
“The infernal candle is coming for you. Look at your ass, “he commented.
According to Garner’s chart, the potential lower level for subsequent price losses this time appears to be $ 11,300, a 15.4% drop from the local high.
BTC / USD chart with highlighted BLX entry and exit points. Source: Cole Garner / Twitter
Loyalty to the search for mineral derivatives
Bitcoin has held $ 13,000 as broad support for nearly a week, with only brief dips below that level in contrast to the general bull market atmosphere.
As Cointelegraph reported, network fundamentals have started to decline from all-time highs, which could potentially signal a brief shift in miner sentiment and associated price pressure.
Among network participants, however, the general sense is that of a maturing market, with a hash rate still an order of magnitude higher than it was two years ago. To manage risk, miners should therefore turn to dedicated hash rate derivatives as the industry becomes larger and more competitive.
Currently looking for this new derivative product format is asset manager Fidelity, the company famous for its Bitcoin support.
“We are researching and experimenting with a number of new difficulties and hashrate derivative contracts to learn how miners can incorporate contracts into their strategies to reduce the risks associated with unexpected increases in network hashrate,” confirms an update on the company’s website. company released Monday.
Research and development are carried out by a dedicated spinoff, the Fidelity Center for Applied Technology.