A top crypto strategist is unveiling two possible scenarios where bulls can regain control of Bitcoin (BTC) after a failed breakout above $44,000.
In a new strategy session, pseudonymous crypto analyst Cred says that momentum is on the side of the bears after Bitcoin failed to sustain its rally despite a “flurry of public buying.”
However, Cred says that all is not lost for bulls as he says BTC is quickly approaching a key support level that has kept Bitcoin afloat for most of 2022.
“So what would be bullish? Well two things: one is either reaching support [$36,000] and/or the range low where the expected value of being long goes up and the risk-reward of long setups becomes more definable and attractive. That would make sense.”
In another scenario, Cred says bulls can assert their dominance if they manage to reclaim $44,000 and flip it into support.
“Alternatively, if this bearish setup starts to fix itself, which is to say a rally back through the range high [$44,000], which doesn’t get rejected and actually finds acceptance, that would be positive as well.”
According to Cred, a move above resistance at $44,000 can push Bitcoin above $50,000.
“If the market trades back above where the failed breakout took place, it’s generally less likely that you get a second bit of price action that looks like a deviation. It’s kind of a fool me once type of thing where if you’ve already got one impressive failed breakout or trap pattern at the level, it’s far less likely that you get a second failed breakout or trap pattern…
If the market shows some relative strength into the $44,000 to $46,000 and wherever this dump stops – whether it’s at the midrange, maybe it’s at the range low, maybe it’s at zero – in any case… I think trading back above $44,000, the probability of getting this price action is lower and the probability of continuation towards the previous targets of $52,000 or whatever it may be is higher.”
I
Follow us on X, Facebook and TelegramDon't Miss a Beat – Subscribe to get email alerts delivered directly to your inbox
Check Price Action
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 losses 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/Tithi Luadthong/Sensvector
