A widely-followed crypto analyst says Bitcoin (BTC) is on the verge of losing a key support level as the king crypto stumbles.
With BTC trading for $22,517 at time of writing, down 2% on the day, pseudonymous trader Rekt Capital is sending a warning to fellow traders.
The analyst says BTC needs to close above $22,692 to keep its technical uptrend intact.
“Bitcoin held the trendline well yesterday, whereas today’s price is downside wicking below it.
BTC needs to daily close above the green Higher Low to keep the technical uptrend intact.”
However, the trader says it’s too early to lose hope, and Bitcoin could still climb back into its bull zone.
“BTC is threatening to lose its multi-week Higher Low (green) after rejecting from ~$23,400 resistance.
At this stage, BTC could still recover back into the green triangle and have this price action print as a downside wick. This Higher Low is the one to watch.”
The trader is also outlining some insight into crypto trading psychology.
“After a successful trade, dopamine is released in the brain, leading to the desire to repeat this experience. Try to go against this urge.
Let the euphoria of the win die down. And allow enough time for your neurological chemistry to return to baseline.”
Expanding on the point, the trader warns followers about the potential pitfalls of “fear of missing out” (FOMO)-based trading.
“If you FOMO on a green day… You won’t have enough ammo to FOMO on a red day. If you must FOMO – choose a red day.”
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Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
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Source: https://dailyhodl.com/2023/02/09/trader-warns-bitcoin-uptrend-will-be-lost-if-top-crypto-closes-below-this-number/