Bitcoin (BTC) is down slightly below the $66,000 mark after briefly touching the $69,500 level on October 21. This three-day $4,000 crash created a buying opportunity, according to a Bitcoin smart trader who accurately predicted this target.
In particular, a prominent trading expert with a good track record, CrypNuevo, warned his followers Bitcoin could break local support. The support formed after eight subsequent four-hour attempts to break it from October 21 to 22, after the local high.
Notably, CrypNuevo spotted the possibility of a bear trap hunting stop-loss liquidity right below the now-strong support. The Bitcoin price played out precisely as expected, breaking the line many analysts were watching and renewing the bearish sentiment.
Smart trader is buying Bitcoin, but there is a safer entry
In the smart trader’s opinion, this bear trap makes a good entry point for investors with higher risk tolerance. A safer buying opportunity, however, would surge after a support’s retest at $66,845, increasing the odds of positive returns.
“This setup could be playing out since we got the drop in the appropiate timing. Potential risk of seeing $65.9k first, some liquidations there. The safer entry trigger is marked in the chart but I’m bidding here since I have room to apply risk this week.”
– CrypNuevo
As quoted, the trader had also forecasted the possibility of Bitcoin visiting $65,900, a level reached by this writing.
Notably, this was another show of CrypNuevo‘s accuracy, which Finbold has also reported in previous analyses. Yet, Bitcoin traders and investors must understand that even high-quality analyses and historically profitable traders will eventually be wrong.
The “smart trader” concept originates from the “smart money” initial concept, previously attached to gamblers with a good track record, although now it is used for professional financial institutions.
Finbold has told stories of smart traders with positive results, which are worth following for valuable trading insights.
On the other hand, analysts like Alan Santana, who also has a considerable trading reputation, disagree on the buying momentum. Santana warned Bitcoin’s “Uptober will end as Downtober,” forecasting a crash down to as low as $36,000.
While this seems like an overly bearish stance, Bitcoin’s history shows that anything is possible under its highly volatile landscape. It is important to consider different biases when making financial decisions and act cautiously with proper risk mitigation strategies.