Bitcoin Headed For 30% Pullback? This Trader Thinks It's A Sign Of Strength

Renowned cryptocurrency analyst Cold Blooded Shiller has expressed concerns about the potential for a significant correction in the price of Bitcoin (CRYPTO: BTC).

What Happened: In an April 16 tweet, Shiller acknowledged the current strength of Bitcoin, attributing it to various factors such as ETFs, fundamentals and the Bitcoin halving. However, he also raised concerns about the historical tendency of Bitcoin to experience 30% pullbacks.

“What happens to the landscape if BTC does head down for a -30% correction and into the 51ks,” he questioned.

Shiller further noted that while many are treating the current strength of Bitcoin as a positive sign, the potential for a significant correction is a concern that weighs heavily on his mind. “For now all you can do is play for what we see. But the what if does weigh heavily on my mind,” he added.

In a separate post, he highlighted the Renko chart analysis of Bitcoin.

He points out that Bitcoin, which usually stays well above the bottom of the wave, has now touched it. He also adds that Bitcoin has bounced off the support level but could be rejecting the underside of the wave as it curls over. The loss of the $61,000 mark and the wave could spell trouble, according to the analyst.

For those unfamiliar, a Renko chart is built using price movement rather than both price and standardized time intervals like most charts are.

Also Read: Peter Schiff Predicts Bitcoin ETFs Will Lead To Its ‘Biggest Crash Ever’

Why It Matters: The trader’s comments come at a time when Bitcoin has reported an 8.6% drop over the past week, while its monthly loss stands at 6%. Despite the price drop, daily active addresses expanded by 9.5% to 949,040, and large transaction volume increased by 6.8% to $63.3 billion.

Shiller’s views highlight the inherent volatility and unpredictability of the crypto market, serving as a reminder for investors to remain cautious and vigilant.

While the crypto community continues to debate Bitcoin’s price movements, it remains a focal point for investors and analysts alike. As the market continues to evolve, these insights become increasingly valuable in navigating the volatile world of cryptocurrencies.

What's Next: The influence of Bitcoin as an institutional asset class is expected to be thoroughly explored at Benzinga's upcoming Future of Digital Assets event on Nov. 19.

Read Next: Bitcoin And Ethereum Take Center Stage According To Coinbase Q2 Crypto Market Guide

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