By CCN: Bitcoin’s mammoth rally suffered a devastating setback on Friday when a $35 million sell order triggered a vicious flash crash on Bitstamp. By the time the dominoes had stopped falling, the bitcoin price had plunged as low as $6,894, and more than $32 billion had vanished from the crypto market cap.
And fervent bitcoin bull Mati Greenspan couldn’t be happier.
Finding a Silver Lining in the $32 Billion Crypto Crash
Greenspan, a senior analyst at eToro, gushed about the sudden pullback in daily market commentary shared with CCN, stating that it was “picture perfect” and could pave the way for the bitcoin price to blast toward a new all-time high above $20,000.
What could possibly be bullish about this crypto bloodbath? Greenspan explained that the sell-off would provide analysts with a better picture of the true nature of the recent bitcoin price rally.
“The pullback is happening as we speak. This is a great thing because it will allow us to better understand the nature and scope of the recent rally. When things are just going straight up, it becomes really difficult to tell how far they’ll go and how far they’ll fall after.”
“It should also help us to eventually make the distinction and say if this is a bull market or just a bull run. Not to mention, providing a cheaper price for those looking to buy in without having to buy the top.”
Bitcoin Price Faces No Major Resistance Until $20,000
While perhaps uncomfortably reminiscent of the 2018 crypto crash, Greenspan stressed that the sell-off had not plunged bitcoin below any key support levels, nor had it caused BTC to break below its long-term ascending trendline.
A swift recovery would not only confirm the market’s bullish sentiment but would also put the bitcoin price on the fast-track to test the record high it set in December 2017. That’s because the flagship cryptocurrency faces “virtually no major levels of [technical] resistance” until it approaches $20,000.
IF the pullback does reverse now and we continue past the recent highs, there is virtually no major levels of resistance until $20,000.
Past performance is not an indication of future results. This is not trading advice. Cryptoassets are very risky. So trade with caution. pic.twitter.com/xKT9534OUt
— Mati Greenspan (@MatiGreenspan) May 17, 2019
Of course, this bullish narrative hangs entirely on BTC rebounding in the near-term, rather than slouching back toward its bear market lows.
“So,” Greenspan warns, “trade with caution.”