Bitcoin (BTC) continues to exhibit bullish sentiment, maintaining its position above the $50,000 mark as the market anticipates a possible push toward a new record high. Despite the optimistic market conditions, uncertainty over the digital asset’s next move still looms.
In this line, cryptocurrency trading expert Gareth Soloway, during an interview with David Lin published on February 18, suggested that Bitcoin can potentially experience a drop, drawing parallels with the stock market.
According to Soloway, amid the bullish conditions, Bitcoin could retest the $30,000 mark if the stock market undergoes a correction ranging between 20% to 30%. He considers this potential new Bitcoin position a ‘line in the sand’ and views it as an accumulation opportunity.
This perspective aligns with Soloway’s broader thesis that Bitcoin tends to behave as a risk asset and could naturally undergo sell-offs during periods of broader market decline.
“My major line in the sand is that $30,000 to $32,000 level, so if we can retrace there I’ll start accumulating pretty heavily. <…> My thesis is that if we see a 20-30 % correction in the stock market, then have to talk about Bitcoin possibly coming back to $30,000 to $32,000,” he said.
Additionally, while highlighting the frothiness in the market, Soloway drew parallels between the current sentiment on social media and the behavior seen during the previous Bitcoin market top at $69,000.
He expressed concern about a prevailing attitude reminiscent of stock market bubbles, where speculative behavior leads to an assumption that any investment choice is a winning one.
Possibility of Bitcoin reclaiming record high
At the same time, while anticipating a price pullback, Soloway dismissed the possibility of Bitcoin reclaiming its last record high of almost $69,000 before any potential correction. However, he acknowledged the existence of fundamental, long-term reasons to be bullish on Bitcoin.
Furthermore, the expert commented on the drivers behind the recent Bitcoin rally. Despite the recent surge, Soloway believes the rally is no longer solely driven by the spot exchange-traded fund (ETF) or the upcoming halving.
Instead, he pointed to broader market dynamics, emphasizing the role of money and risk assets in propelling Bitcoin’s recent gains.
It’s worth noting that Soloway joins other market players who believe that Bitcoin has the potential to correct. For instance, as reported by Finbold, crypto trading expert Alan Santana suggested that based on recent technical indicators, Bitcoin faces a possible ‘fast, sudden, and strong’ drop.
Bitcoin price analysis
By press time, Bitcoin was trading at $51,669, reflecting a daily gain of nearly 1%. The maiden cryptocurrency has surged by almost 8% on the weekly chart.
In technical analysis, Bitcoin is currently dominated by bullish sentiments. A summary of the one-day gauges retrieved from TradingView aligns with the ‘buy’ signal at 10. Moving averages signal a ‘strong buy’ at 13, while oscillators recommend a ‘neutral’ stance at 9.
In the meantime, Bitcoin bulls hope the asset maintains its valuation above the $50,000 mark, as it’s crucial to helping the cryptocurrency mount a new all-time high.
⚠️Disclaimer
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