Mark Dow, a former IMF economist who manages a family office in southern California, has published a warning to Bitcoin (BTC) bulls, revealing a key support line that needs to hold to maintain the technical health of the leading digital currency.
In a recent tweet, Dow shares that he still believes that Bitcoin’s chart is “beautiful,” despite the more than 80% retrace in 2018.
Still a beautiful chart. If bitcoin can’t bounce to at least 5k-6k soon, it’s a really bad sign for the cyberbulls. And if it breaks down thru the yellow line at any point, even the HODLers need to GTFO. $BTC $XBT pic.twitter.com/FqqyzE1mhb
— Dow (@mark_dow) December 27, 2018
Dow also warns bulls that if Bitcoin is unable to break out above the $5,000-6,000 range, it could mean that more pain is imminent. And, if the bears are able to drive Bitcoin down below $3,190, it means that the chart’s technicals are really broken and even long-term investors (often called “HODLers”) should consider exiting their positions.
As we previously reported, Dow recently closed a short position he opened against Bitcoin near the height of the market last December, shortly after Bitcoin futures began trading.
BTC is currently down over 3.6% on the day to $3,654, giving the largest digital currency a $63.7 billion market cap. This means that Bitcoin will need to drop roughly 14% to hit the critical support line described by Dow.
More: Mark Dow’s Tweet
Disclaimer: This article’s author has cryptocurrency holdings that can be tracked here. This article is for informational purposes only and should not be taken as investment advice. Always conduct your own due diligence before making investments.