Crypto analyst and founder of Texas West Capital, Scott Melker, is not convinced that Bitcoin (BTC) has firmly shifted out of its brutal crypto winter to start a new long-term bull trend.
According to Melker, BTC must cross one more crucial level of resistance at $10,584 to confirm a trend reversal. BTC last touched that level back in October of 2019.
“Delete everything from your chart. There’s only one line that matters now. A break of this line would be the first macro higher high since the 14K top. Movement above and a flip to support would effectively end the ‘bear market’ argument. Higher high = confirmed bull trend.”
Meanwhile, a popular strategist known in the industry as Bleeding Crypto says a healthy correction is likely coming after BTC’s meteoric 2020 climb from $7,233 at the start of the year to its current price of $10,189.
“Please have a reasonable expectation of the market. Look left on the charts and when was the last time the market went green for a good period of time with no correction. Don’t HODL, rather secure profits and ‘Rinse and Repeat’.”
The analyst has a similar outlook for Ethereum (ETH). He argues that the second-largest cryptocurrency by market cap could hit $285 before dropping to a support level as low as $185.
“Market continues to put in green after green after green, but this is not sustainable. Correction are necessary/healthy. I am looking for a possible [ETH] correct here, but FOMO might take her up as high as the 100EMA on the weekly ($285) We will have to see”
As for XRP, the trader has similar advice for anyone feeling an intense fear of missing out. He believes a correction is also overdue for the digital asset, which is trading at $0.3232, up 67% since January 1st, according to CoinMarketCap at time of publishing.
“I am seeing too many people talking about taking a position right now on XRP. I would advise you to think it over. This is what I think we may see here. No one likes to buy when it’s down but it’s amazing how many people love buying the tops of candles.. I just don’t understand.”
Analyst Josh Rager is also expecting the crypto markets to go through a pullback. But he and fellow trader Cantering Clark also agree that in the crypto markets, nothing is certain and you can often expect the unexpected.