Cheds Looks Into Bitcoin As It Flashed ‘False Break’ Signal Amid Recent Dip
According to a prominent crypto analyst and trader, known as Cheds, Bitcoin (BTC) could be indicating a ‘false break’ signal which means that further downside could follow.
Cheds shared with his 36K YouTube subscribers that BTC showed a “false break” signal after briefly plummeting below $40,000 on Monday.
The leading digital asset has since recovered some ground and at the time of writing, BTC is trading at $42,702.
The analyst elaborates:
“One of the most powerful signals in all of technical analysis is where you have a ‘false break’ and a run.
So in my analysis in Bitcoin Live – other people have talked about this, this isn’t like genius-level analysis – but I basically told them, ‘Hey if we dip below $40k, and we don’t pretty much immediately recover it, we’re in major trouble. But if we dip below $40k and we get back above it, you want to buy it.’
… So we had that false break. We had that spring below $40k, and what does that do? That sets up a change in momentum. Now we need follow-through.”
Back in October last year, Cheds accurately called that there was a high possibility that a BTC futures exchange-traded fund (ETF) would launch.
He also correctly predicted that this would send BTC on a rally that topped out somewhere around $64,000, and then it would correct down to $40,000.
The analyst also called that after Bitcoin corrects to the $40,000 level, an ascending triangle would form – a signal that often suggest breakouts to the upside when validated.
In his recent video, Cheds said that Bitcoin has now flashed the same spring that happened when it briefly dipped below $30,000 in July.
Is BTC is about to break out via an ascending triangle? The analyst doesn’t know.
“Now the $30k spring brought us to $67-69k. Will the $40k spring get us right back on track for the weekly ascending triangle to $100k?
