A closely followed crypto strategist and trader is unveiling what he believes is the catalyst behind Bitcoin’s latest pullback.
Pseudonymous analyst Credible told his 322,500 Twitter followers earlier this month while Bitcoin was still trading above $47,000 that a deep-pocketed investor has placed massive buy orders between $40,000 to $44,000.
“A large player has layered bids between $40,000 – $44,000, in line with the retest of our weekly level mentioned in my tweet below. Seems to be the same entity that filled a ton of bids at $32,000- $38,000, our literal bottom. If price can be manipulated into his bids below, it probably will be. BTC.”
The crypto strategist was referring to a tweet he posted on April 1st where he predicted a Bitcoin pullback to around $42,000 before the next leg up.
According to Credible, the correction will allow the large entity to accumulate BTC at lower levels.
“With this last weekly close, we have reclaimed a very significant level. The last four times we closed above or below this level on the high timeframe, we have moved to the opposite end of the range over a number of weeks. Expecting the same this time – a retest of low $40,000s and continuation up. BTC.”
With Bitcoin now trading around $42,000, Credible says that the orders of the large entity are getting filled.
“And so it begins. The Bitfinex whale fills his plate with fresh bear steaks. The spikes in volume at the bottom of the chart indicate that the bids are not spoofs – they are being filled. BTC.”
Although Credible paints a short-term bearish picture for Bitcoin, he predicts a BTC rally in the coming days after the correction completes.
“The weekly candle closes in two days, and we want to close inside/above the BLUE region shown here to maintain this as a bullish retest. Intra-week we can go lower – it’s the close that matters. Further confirmation on a low timeframe break in market structure and then a higher low.”
The crypto strategist also cites data from Glassnode showing the increasing amount of Bitcoin that have stayed dormant for over a year.
“It’s okay to be a [bear] just don’t be one here. BTC.”
Looking at the chart, Bitcoin has historically launched a strong bull rally every time the metric hits the green region.
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