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Bitcoin Price Dangerously Close to ‘GTFO’ Level: Analyst Mark Dow

Last Updated March 4, 2021 2:51 PM
Josiah Wilmoth
Last Updated March 4, 2021 2:51 PM

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.

bitcoin price
The bitcoin price endured two nasty drops on Thursday.

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’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. However, truth is I know v little about it. What I do know is it has been highly tradeable based on patterns, and I suspect it will continue to be.

According to Dow, yesterday’s pullback brought bitcoin dangerously close to approaching a level at which even bullish traders should “GTFO.”

On Coinbase, for instance, the bitcoin price slipped as low as $3,560, just $10 above Dow’s escape hatch, though it quickly scrambled back above $3,600 to give traders a bit of breathing room. If that support line cannot hold, Dow warned that the market could see another sharp drop as it continues to frantically search for a bottom.

Thursday Drop was ‘Insignificant’: Mati Greenspan

However, other technical analysts have taken a different reading from the charts.

Writing in daily market commentary made available to CCN.com, eToro Senior Market Analyst Mati Greenspan — an admitted cryptocurrency bull — said that the movement was “actually insignificant” since bitcoin stayed within the range at which it has been trading since mid-November.

“The total movement of 12% from peak to trough was actually insignificant. All we’re seeing is a movement from the top to the bottom of the range,” Greenspan wrote. “As we’ve been discussing since mid-November, the current range is from $3,000 to $5,000 (dotted blue lines). It seems now, that bitcoin has opened a new mini-range within that from [$3,550] to approximately $4,200 (yellow lines).”

bitcoin price technical analysis
Mati Greenspan of eToro said that bitcoin’s Thursday drop did not change the asset’s technical outlook.

Though the movements likely caught many investors off-guard, Greenspan alleged that one shouldn’t overstate their importance.

Movements within a range can sometimes be sudden like we saw yesterday, but unless there’s a breakout of the key levels there really isn’t much to write home about.

In any case, the bitcoin price recovered a small portion of its Thursday losses on Friday, climbing to an aggregated level of $3,701 as of the time of writing. The overall cryptocurrency market, meanwhile, carried a valuation of $123.6 billion.

Featured Image from Shutterstock. Price Charts from TradingView .