Crypto influencer baffled by recent BTC growth, thinks Bitcoin is falling knife
Influencer and well-known crypto enthusiast David Gokhshtein, in his recent public address, wondered why people like catching falling knives so much, referring to Bitcoin and its recent price perturbations.
Why do people like catching falling knives?#bitcoin
— David Gokhshtein @ FWYT (@davidgokhshtein) August 29, 2022
Apparently, the crypto media author was confused by BTC’s recent bounce above $20,000 after the main cryptocurrency shortly fell below that price point. Taking Gokhstein’s definition of Bitcoin, one would think that the blogger believes that opening long positions now is an extremely risky action and, as is customary with sharp falling objects, it is better to let it fall and then make investment decisions when the touchdown is confirmed.
Summarizing the influencer’s opinion, it turns out that the current bounce, following Gokhstein’s investor language, is a dead cat bounce that only confirms Bitcoin’s departure to low levels.
Is Bitcoin now really falling knife?
After buyers have held the $19,500 level, the first important zone on the way to the continuation of the movement becomes the $22,500-$23,000 block. Bitcoin must overcome the $21,500 level and consolidate above it in order to reach the first target. Then, it is necessary to look at the reaction, when the exit beyond $23,000 means the continuation of growth, and a rebound – a possible decrease.
This is a technical view, but as for the fundamental factors, it is not pretty.
Thus, CoinShares reported on Monday that Bitcoin outflows had intensified, with last week’s funds outflow totaling $28.9 million. In addition, analysts declared that trading volumes are at record lows since October 2020, describing the state of the crypto market as “apathy.”