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.
I
Check Price ActionDon't Miss a Beat – Subscribe to get crypto email alerts delivered directly to your inbox
Follow us on Twitter, Facebook and Telegram
Surf The Daily Hodl Mix
Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
Featured Image: Shutterstock/klyaksun
