Liquid Capital founder Yihua Yi said Bitcoin’s recent rebound during a broader decline does not mean the correction has ended. In a post cited by BlockBeats on Oct. 13, Yi said weakening U.S. equities and rising oil prices have added pressure, with BTC falling below the midline on the 4-hour chart, which he identified as the 20-period moving average. He added that, aside from the weekly chart, Bitcoin is showing weakness across the 15-minute, 1-hour, 4-hour and daily timeframes.
Yi also referred to the earlier move down from around $86,000, saying Bitcoin repeatedly fluctuated and tried to break through the strong resistance near $87,000, a setup that had made him uneasy. During the pullback, a brief move above the key $84,000 level could also easily trigger emotional swings, he said. Based on that reading, Yi urged traders not to stay involved in the market at all times. In his view, the cost of a wrong trade is greater than the cost of missing an opportunity, and investors should stick to their trading rules instead of being thrown off by short-term volatility.
Liquid Capital founder Yihua Yi said Bitcoin’s pullback may still have room to run, even after a rebound seen during the recent decline.
According to BlockBeats on Oct. 13, Yi said BTC had fallen below the midline on the 4-hour chart, which he described as the 20-period moving average, as U.S. stocks weakened and oil prices moved higher.
He said Bitcoin is currently showing weakness on the 15-minute, 1-hour, 4-hour and daily charts, with the weekly chart the only exception. On that basis, he said the correction may not be over yet.
Yi also pointed to an earlier retreat from around $86,000. During that phase, Bitcoin repeatedly swung and tried to break above the strong resistance at $87,000, which he said had once made him concerned. He added that during the pullback, a brief break above the key $84,000 level could also easily stir emotional reactions.
For trading, Yi said investors should stay patient and avoid trying to participate in the market at all times. Missing an opportunity carries a smaller cost than making the wrong trade, he said, adding that investors should stick to their trading principles and avoid being distracted by short-term price swings.
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