A closely followed crypto analyst is mapping out what’s ahead for Bitcoin (BTC) after the leading cryptocurrency skyrocketed past the $40,000 price level.
In a new strategy session, pseudonymous analyst Cred says Bitcoin looks constructive after it closed February on a high note at $43,953.
Cred says Bitcoin’s strong monthly close shows that BTC is still trading in a wide range between support at $33,000 and resistance at $47,000.
“At the moment, at least what we’ll derive from this monthly close, is that support supported, resistance resisted and the market still seems to be higher timeframe range-bound until proven otherwise.”
Although Cred believes that BTC is still in a sideways market, he says that Bitcoin will gather bullish momentum and ignite a 30% surge if it takes out resistance at $47,000.
“One thing I’ll note is that I will add this range high [$58,000], highest closed [monthly] level. The thing to infer from that is that if the midrange of $43,000 and $47,000 is broken, I don’t think there’s much in the way for a high timeframe move towards $58,000.”
Taking a closer look at Bitcoin’s probability to take out its immediate resistance around $47,000, Cred says that buyers are coming in at a higher price after the dominant crypto established a bullish higher low setup at $35,000 on February 24th.
“If we manage to get this market structure to reclaim [move above $47,000] and break up resistance, and that wouldn’t be terribly unforeseeable given the market’s rejected once, moved lower, rejected a second time, potentially made a higher low here – so maybe some evidence of relative strength starting to emerge, which is nice.”
In technical analysis, touching a resistance area multiple times is a bullish signal as it indicates seller exhaustion.
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