In this past weekend, BTC has shown a very high level of volatility. The leading crypto per market capitalization has lost two strategic support levels. Currently, as of the time of compiling this article, the asset is trading at $34,312, accounting for about a 5.3% loss on a 24-hour range.
The renowned former hedge fund manager, Michael Burry, made his way back to social media. Through his Twitter account, he predicted movements in the market. For those holding their long positions, it might be pessimistic and could eventually be bad news.
Burry is well-known for his prediction of the fall in the mortgage bond market. The fund he is managing, Scion Asset Management, made a huge profit by shorting the bond market around the mid to late 2000s.
On the latest tweet he posted on his Twitter page, Michael Burry compared BTC with Troy Polamalu, an NFL player. Burry asked his followers jokingly what the similarities between the crypto and Polamalu.
In a chart he released, the former hedge fund manager said the price of BTC would follow the famous head and shoulders pattern. The formation on the chart usually presents itself as a baseline with three peaks. With the pattern, there will be a flip from the expected bullish move to a bearish trend.
Replies on the prediction made by Burry affirm the accuracy while others rebut it. A trader replied: “On a negative scale, it is going down to around $5,000.”
Burry has very critical of the alleged increase in the number of traders and investors with leverage positions in the cryptocurrency market. Now, he is betting against BTC and other digital assets, including some other profitable companies in the traditional market.
The Outlook of BTC in a Short Time is a Rebound?
The market bulls are standing at the last line of support, and the asset must hold above the $33,500 level, or a further retracement is imminent towards the $20,000 level. Ali Martinez, an analyst, has released different sales signals for BTC in the previous 24 hours.
The first signal is from the TD Sequential – an indicator designed to measure the exhaustiveness of the price in an up or downtrend – on the 24-hour chart yesterday. Then, the price fell below the $37,000 level and was consolidating between the $35,000 level for few hours before heading down currently.
According to Martinez, the $33,500 to $31,700 is a major resistance where about 1.3 million addresses acquired about 643,000 BTC around the level. The TD Sequential indicator signaled going long on the 12-hour chart, and the analyst believes that BTC could rebound to the $37,000 level if the support holds.