Crypto Analyst Cred: BTC And ETH Need Strong Rallies Before End Of May

According to a widely-followed crypto analyst and trader, known as Cred, Bitcoin (BTC) and Ethereum (ETH) need a miracle to reverse the latest downtrend.

Bitcoin (BTC)

Cred writes in the recent TechnicalRoundup newsletter that Bitcoin (BTC) would desperately need an “imminent and strong rally” to defend the support zone that it has been held since June last year.

The probability of a further pullback will increase if the the largest crypto by market cap fails to stage a rally, according to the analyst.

“With only one week left until the monthly close, absent an imminent and strong rally, May will close as a macro range breakdown.
Even if the market rallies following the monthly close, that rally must be treated as a bearish retest of support turned resistance at $35,000 to $37,000.
To summarize, the market must form some miracle rally this week to fix what appear to be monthly and weekly range breakdowns. If that doesn’t happen, any subsequent rallies into the low-mid $30,000s are bearish retests, and continuation lower becomes much more likely.”

*_{Source: TechnicalRoundup Newsletter}*

According to Cred, in the worst-case scenario, assuming that the support area doesn’t hold, Bitcoin could see over 50% fall from the current price.

“Should the market continue to trade lower, our downside objectives are around $20,000 (200-week moving average, prior cycle’s all-time high) in the medium-term and plausibly as low as $14,000 on the monthly time frame.”

At the time of writing, BTC trades at $29,310, down 1.9% on the daily chart.

Ethereum (ETH)

Looking into Ethereum (ETH) next, the analyst notes that it would also desperately need a strong rally before the end of this month with only few days left.

ETH needs to close above $2,300 to avoid breaching the support zone that it has consistently held since April 2021, Cred says.

“Ethereum/Dollar could also use a final week miracle rally.
There is a macro range, the range appears to be broken (pending the close next week), the range breakdown is bearish until there is a strong move back above support. For Ethereum/Dollar, that would require a monthly close above $2,300.”

According to Cred’s estimate, Ethereum could lose over 40% of its current value, if the range breakdown happens.

“As far as downside targets if the aforementioned move back into the range doesn’t happen, there is a lot of confluence around $1000 (200-week moving average, monthly support, round number).”