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.”
[adinserter block="1"]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.”
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