A closely followed crypto trader is outlining an aggressively bullish case for Bitcoin (BTC) as it recovers from its multi-month downtrend.
In a new strategy session, pseudonymous analyst Cred says that Bitcoin is trading in a wide range between $58,800 and $35,000 with a midpoint at around $46,930.
With Bitcoin respecting the range support at $35,000, Cred warns that the leading crypto by market cap is now facing heavy resistance around the range midpoint of $46,930.
“You can kind of see on my personal chart there’s a stack of resistance on this monthly and weekly level from $44,000 to $47,000, and there are these cheeky high timeframe moving averages stacked above it as well for maybe a wick before those ultimate reversion targets are met.”
Cred highlights that Bitcoin’s reaction to the range midpoint is crucial as it will likely dictate whether BTC sustains its rally or corrects all the way down to the range support.
“At this area [$46,900], we can develop more reasonable and more through ideas be it acceptance above and a move towards the range high [$58,800]. Maybe it’s a pullback that gives us a bounce at some sort of higher low level, if not trading back at the range low itself.”
While the crypto analyst believes that the range midpoint will offer some level of resistance, he also outlines the “extreme bullish” case where Bitcoin just smashes through $46,900 en route to $58,800.
“A lot of stuff converges at this $47,000 to $48,000 level as a level of resistance. On the monthly timeframe, it really didn’t do much as support. Perhaps again, 5% [to] 10% extreme bullish case is just like the market didn’t offer a bounce at the midpoint or any significant bounce, just in the same vein, it won’t offer any resistance at that level, and it will move straight towards the range high.”
Cred’s referring to Bitcoin’s price action from November to January when BTC dropped from its all-time high of $69,000 to a low of $33,000 without any meaningful bounce. In the crypto analyst’s bullish case, he says it’s also possible for BTC to go on a parabolic rally without any meaningful correction.
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