Trader Crypto Savy is paying close attention to the bearish divergence that has emerged in the Bitcoin market, and he’s advising traders to exercise extreme caution as the crypto asset approaches some important support levels around the $65,000 mark. According to the trader, who recently broke out on social media, these critical levels should serve as warning signs for all traders.
Crypto Savy Returns With a Stark Bitcoin Warning
It has been a few weeks since his last vacation, and Crypto Savy is back in front of his audience to put things in perspective. His message is unambiguous: one would do well not to overlook the bearish divergence at play in Bitcoin.
Despite all the external headwinds the wider market is facing, from the fallout of Canadian wildfires in some areas to other pressures, it is the technical picture within Bitcoin that is becoming more of an issue. The trader drew attention to a hidden bearish divergence that has taken shape as the asset lingers around $70,000; on the surface, the charts may look stable, but there is a fragility to them.
In Crypto Savy’s view, this is a classic indicator that bullishness is running out of steam. He warned that if the price cannot be kept above $65,000, a more substantial correction is likely. With support levels and macro factors at play, the next major development in crypto will be defined by whether that level can hold.
Broader Market Selloff and Technical Breakdown
Bitcoin is not the only thing on Crypto Savy’s mind. He has put a spotlight on the unease pervading the broader market, with the Dow Jones down 36 points and the S&P 500 off by 24 points, while the Nasdaq suffered a more pronounced 236-point loss. In his view, such activity only serves to heighten risk-off sentiment and add to the strain on crypto assets that are already in a delicate position.
Savy emphasized the importance of the $65,000 support zone in his analysis. A failure to hold it would be cause for concern; he cautions that Bitcoin could quickly retreat to $39,000. Then there is the 8-month EMA at roughly $49,000, which might offer some interim support, but he was quick to add that should that give way, even lower levels will come into play.
Bearish Flags and Long-Term Outlook
In a more forward-looking view, Crypto Savy put forward the possibility of a giant bearish flag taking shape; if that pattern materializes, it could drive Bitcoin down to $29,000. He was at pains to point out that one has to respect technical formations in these volatile markets, even if a move of that magnitude appears extreme.
As for the broader crypto market, Savy’s analysis pointed to a bearish streak that is likely to hold through October. His advice to traders was to stay on their guard and monitor the $65,000 mark carefully. If support there gives way, he said, it may be time to consider shorting.
Source — Crypto Savy: https://www.youtube.com/watch?v=WAbzt0UnrVw