As bitcoin crashes, two traders share key levels to watch

[ad_1]

Cryptocurrencies were in the crosshairs on Thursday.

Bitcoin, Ether, and Litecoin all fell as investors turned to riskier assets in favor of safe havens like bonds.

Craig Johnson, chief market technician at Piper Sandler, is watching the charts closely to see how bitcoin might break next.

“We broke in January. A few months ago we hit that high. In fact, I would go back and put the retracement levels above bitcoin, and when you see that you can see that around 33,000 to 34,000 is a very important retracement level, “Johnson told CNBC’s” Trading Nation “on Thursday, referring to the Fibonacci retracement in technical analysis which marks key support and resistance levels.

Zoom In Icon Arrows Pointing Out

Bitcoin has rebounded between $ 31,500 and $ 34,800 for about two weeks. Johnson says based on his history, bitcoin is unlikely to fall much further. However, he sees a prolonged period of consolidation.

“You’ve seen bitcoin correct around 45% before. When you look back to the last two previous cycles, those crypto cycles lasted around 1,000 days,” he said. “You have to be prepared to close the hatches and wait for it to consolidate for a while before you start the next big major step higher up.”

Blue Line Capital President Bill Baruch owns bitcoin and is waiting for the next opportunity to add to his post.

“Give me $ 25,000 in bitcoin, and I’ll buy more,” Baruch said during the same segment.

“I’ve been in space since 2017. There are times when I’m there, there are times when I’m not, I totally went out at the start of this year,” he said. .

Zoom In Icon Arrows Pointing Out

Baruch said he redeemed bitcoin when it hit $ 32,500. It also holds the ether and solana cryptocurrencies.

Bitcoin last traded at $ 32,870. It is expected to drop 24% to reach Baruch’s buy target level.

Warning

[ad_2]