Crypto Analyst Lays Out A Bullish Case For Bitcoin Amid Signs Of Recovery
A popular crypto analyst and trader, known as Cred, draws a bullish case for Bitcoin (BTC) as shows signs of recovery from several month of decline.
In a recent video update, the analyst noted that Bitcoin price is ranging between $58,800 and $35,000 with a midpoint at around $46,930, where it starts to face heavy resistance.
“You can kind of see on my personal chart there’s a stack of resistance on this monthly and weekly level from $44,000 to $47,000, and there are these cheeky high timeframe moving averages stacked above it as well for maybe a wick before those ultimate reversion targets are met.”
How Bitcoin react at the range midpoint is very important, as it will likely decide the direction whether BTC continues to rally up or corrects down to the range support, Cred analyses.
“At this area ($46,900), we can develop more reasonable and more through ideas be it acceptance above and a move towards the range high ($58,800). Maybe it’s a pullback that gives us a bounce at some sort of higher low level, if not trading back at the range low itself.”
According to the analyst, the range midpoint will most likely face a level of resistance, but there is an “extreme bullish case” where Bitcoin goes straight through from $46,900 to $58,800.
“A lot of stuff converges at this $47,000 to $48,000 level as a level of resistance. On the monthly timeframe, it really didn’t do much as support. Perhaps again, 5% – 10% extreme bullish case is just like the market didn’t offer a bounce at the midpoint or any significant bounce, just in the same vein, it won’t offer any resistance at that level, and it will move straight towards the range high.”
The analyst is talking about to Bitcoin’s price action from November to January when BTC dropped from $69,000 all the way down to $33,000 without any real resistance or bounce. Now in reverse, he is saying that it is also possible that Bitcoin could go up without any meaningful correction.
