Why one Bitcoin analyst expects sudden ‘hell’s candle’ plunge to $11.3K


Bitcoin (BTC) stayed above $13,000 on Oct. 27, but one analyst is warning that the largest cryptocurrency is due for a major correction.

In a tweet on Tuesday, on-chain analyst Cole Garner forecast that BTC/USD could soon end its bull run and suddenly move lower in a “Hell’s candle” event on the daily chart.

Garner to traders: “Watch your ass”

Garner eyed Brave New Coin’s Bitcoin’s liquid coin index (BLX), a price calculator designed to assess at which price points liquidity should enter and exit the market, and the result was firmly bearish.

After its run to $13,370 over the weekend, Bitcoin is ripe to lose investor liquidity, in line with events that followed its return to $10,000 and $12,000 this year.

In each case, a certain price point triggered a sell-off, followed by a slow grind back to higher levels.

“Hell candle’s coming for ya. Watch your ass,” he commented.

According to Garner’s chart, the potential bottom level for the resulting price losses this time appears to be at $11,300 — a drop of 15.4% from the local high.

BTC/USD chart with BLX entry and exit points highlighted. Source: Cole Garner/Twitter

Fidelity researching mining derivatives

Bitcoin has retained $13,000 as broad support for almost a week, with only brief dips below that level contrasting the general bullish market atmosphere.

As Cointelegraph reported, network fundamentals have begun to trend downwards from all-time highs, something that could potentially signal a brief reshift of miner sentiment and associated price pressure.

Among network participants, however, the overall sense is one of a maturing market, with hash rate still an order of magnitude higher than just two years ago. To manage risk, miners should thus turn to derivatives products dedicated to the hash rate as the industry becomes larger and more competitive.

Currently researching this new format of derivative product is asset manager Fidelity, a company famous for its Bitcoin support.