Here’s Why Bitcoin’s Drop Below $20,000 This Week Will Be Very Different From Last Week: Economist Alex Krueger

One economist believes that if Bitcoin (BTC) drops below $20,000 this week, its nature will be fundamentally different from the price drop last week.

Alex Krueger tell Of her 137,500 Twitter followers, the number of stop orders under $20,000 is “pretty low compared to what it used to be.”

“Many traders like me have shorted $20,000 and will never go short again because the low presence of stops makes shorting less attractive.”

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Typically, traders enter stop-loss limits when executing a trade, asking the exchange to sell their positions automatically once the asset reaches a certain price level.

Bitcoin is trading at $20,603.37 at the time of writing. The top-rated crypto asset by market capitalization has risen over 1.4% in the past 24 hours, but is down more than 2.1% in the past seven days. It is still more than 70% of its record height.

explain krueger,

“The big difference between BTC and ETH between now and last week is that a dip now below $20,000/$1,000 would be for a lot of buying opportunities, whereas last week it was below $20,000/$1,000 *strictly* for sale (panic sellers). , forced sellers and specialist sellers).

The Economist expect The price of Bitcoin will rise so much now that panic sellers will be punished.

“I want to see a quick reaction over the next couple of days. The best gatherings are those that don’t make a commitment to the latecomers.

Entry now gives traders 2:1, 3:1 risk reward.”

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Disclaimer: The opinions expressed in The Daily Hodl are not investment advice. Investors should perform their due diligence before making high-risk investments in bitcoin, cryptocurrency, or digital assets. Please note that your transfers and transactions are at your own risk and that any loss you may incur is your responsibility. The Daily Hodl does not recommend buying or selling cryptocurrencies or digital assets, and The Daily Hodl is not an investment advisor. Please note that The Daily Hodl is involved in affiliate marketing.

Main image: Shutterstock / Vadim Sadovski

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