For most of 2019, bitcoin and the wider cryptocurrency market rode a bullish wave, as a reduction in short-selling allowed prices to creep higher. However, on Thursday the bitcoin price crashed below the $4,000 mark, and now one prominent trader warns that it is dangerously close to approaching a level where even bulls need to “GTFO.”
Mark Dow Sounds the Alarm on Bitcoin
That trader is Mark Dow, a former IMF economist who famously shorted the bitcoin price from near its all-time high in 2017 to below $3,750.
Commenting on Thursday’s two-step drop from above $4,000 to below $3,600, Dow said that the flagship cryptocurrency’s technical indicators were not pretty.
“Nasty little air pocket in #bitcoin. If you are a crypto bull, you no NOT want to see this red line broken (~3550). Would be a very bearish sign,” he tweeted on Thursday. “Man, #bitcoin, technically, is really on the ropes here.”
— Dow (@mark_dow) January 11, 2019
Dow’s perspective on bitcoin is interesting, considering that he is relatively agnostic on its long-term fundamental value as an asset and admittedly knows very “little” about it beyond the fact that it is “highly tradeable.”
As he tweeted earlier this month:
I’ve yet to hear a positive, credible use case for #bitcoin. Plus, I see a lot of delusional arguments & scammy promotion.