Cred Says That The Latest BTC Crash Could Be A Bear Trap, Here’s What’s Next

According to a popular cryptocurrency analyst and trader, known as Cred, Bitcoin’s (BTC) recent price crash could in fact be a massive bear trap.

In a recent video, Cred shares with TechnicalRoundup YouTube channel’s 32,600 subscribers that it could well be that Bitcoin is currently shaking out traders below $60K before sparking a huge rally.

“The only level that matters is the weekly range high here (around $59,000). We closed above it. That’s bullish. Market is trading lower now, probably towards [the] previous week’s low ($54,000), but because the close was positive, you’re expecting a trap at previous week’s low and then move back above the level, and your first trouble area is the cluster (around $60,000) and then all-time high plus.

I think that’s not the worst argument in the world.”

According to the analyst, BTC has about a week to reclaim $60,000 level, and therefore confirm the bear trap.

“In the most bullish case, it’s not the weekly [candle] that has to get rescued… The monthly and weekly get rescued. This current s**t price action is just a wick portion. We end up closing above [$60,000], and we all panic for nothing, and it’s a full send.”

On the flip side of the coin, if Bitcoin fails to reclaim the $60K critical level, it could lead to a sell-off event, Cred says.

“But anything that doesn’t look like that will result in a monthly and weekly failed breakout, whereby you had the previous range high ($60,000), market poked above it, [and] closed below it. On any timeframe, on any chart, whenever you get that type of stuff – a real effort to break from balance and falling back within – your targets are the mid-range and the range low.”

End November is the deadline to close above $60K, otherwise it could result in a market reversal that likely drives BTC to around $50K, the analyst estimates.