A popular analyst says that after an abrupt move to the upside, Bitcoin (BTC) could remain in an uptrend.
Pseudonymous analyst Cred tells his 53,500 subscribers of the TechnicalRoundup YouTube channel that if Bitcoin holds above a key level, it could indicate continued bullish momentum for the king crypto.
BTC soared to as high as $30,000 Monday after a news site falsely claimed the U.S. Securities and Exchange Commission (SEC) approved a spot market Bitcoin exchange-traded fund (ETF).
Says the analyst,
“If this is a daily breakout, obviously it’s messy where it’s ended up, because it’s a very fast move and into this prior area, the pre-breakdown range at $29,000, and we actually tapped $30,000… But structurally speaking, fake news or not, retrace or not, as long as the market can hold on a daily closing basis $28,000, then even if this wick weren’t there, then that would still be a compelling bullish argument.
I think that’s a really good way to think about and process this type of price action. If I take my levels, I take my high timeframe closes, if this wick weren’t there, what would my analysis be? And I think there is some merit to that, which is why I’m still focusing on levels and high timeframe candle closes because they can certainly filter for a lot of the noise that surrounds these types of market events. So bull-bear line on the weekly and the daily is $28,000.”
The trader says that if Bitcoin loses the key $28,000 level it will likely retrace to the $26,000 range.
“Obviously… the peak bearish scenario is that this was just a mega top and shouldn’t have happened at all. And we’re just going to proceed to, just like on some of these other moves that we had, essentially get a big outsized move, it goes nowhere and then bleeds down and retraces.”
Bitcoin is trading for $28,496 at time of writing.
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