A closely followed crypto strategist and trader says Bitcoin’s recent correction below $40,000 has set the stage for BTC to rally to $50,000 in the coming weeks.
Pseudonymous analyst Credible tells his 312,900 Twitter followers that Bitcoin’s rejection at $45,069 on March 2nd indicates that BTC is now trading inside a triangle pattern while carving a bottom.
“The depth of this retracement means our B wave is likely complete already if this is a triangle structure – now a standard triangle (like we had at $10,000) rather than running. Daily demand in BLUE at $38,000 is still the key to hold for this idea to remain valid.”
According to Credible, his bullish thesis is based on BTC’s market structure when it traded below $10,000 from September to October 2020. The crypto strategist says that the triangle pattern that formed during that time preceded Bitcoin’s massive rally from $10,000 to $60,000.
“The last segment of our corrective structure that preceded the third impulse wave from $10,000 to $60,000+ was a triangle. [It] would be nice to see something similar here if our bottom is in. Remember a longer base typically leads to a stronger impulse. Pullbacks on BTC to $38,000 – $42,000 are healthy.”
While Credible expects Bitcoin to continue consolidating in the coming days, he highlights that BTC’s recent move above $44,700 has significantly reduced the odds that the king crypto will breach support at $30,000.
“A very strong close here on BTC. This indicates chances we see $29,000 – $32,000 are a lot less likely. Now we just need to seal the deal with a monthly close above $46,800 to put the nail in the coffin for beras.”
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