A closely followed crypto strategist is warning Bitcoin bulls that BTC will likely trap market participants who buy the next rally.
In a new strategy session, the pseudonymous trader known as Cheds tells his 45,100 YouTube subscribers that Bitcoin bears are currently in control and that any bounce is an opportunity to short sell BTC.
“It’s not about predicting where it’s going to go. It’s like college basketball: it’s understanding who has the possession clock and what that means is if we bounce, you look into short. You’re looking to fade a bounce into resistance. You’re looking for whatever is going to give you the best potential setup based on the trend. You’re looking for the best countertrend move that you can fade.”
Cheds also explains why he believes the next rally will likely be a trap instead of a trend reversal. According to the crypto analyst, Bitcoin’s recent move below $45,000 is a major red flag for bulls.
“You had a major level that was tested ($45,000). It formed over time with time interval, time in between attempts, multiple points. You have a break and an invalidation. That is a really bad sign. That has to be the beginning of any analysis not that the stock’s RSI is oversold or that random Elliott Wave or some one-hour head and shoulders. Get over that stuff. Just focus on momentum and key levels.”
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Featured Image: Shutterstock/Bushko Oleksandr/Chuenmanuse