A closely followed crypto trader is predicting surges for Bitcoin (BTC) and Ethereum (ETH) but warns that the rallies will be short-lived.
Pseudonymous crypto analyst Penthoshi shares with his 553,700 Twitter followers the inverted chart of Bitcoin to illustrate that BTC bears are nearly exhausted.
“This looks tired. So many trapped longs [shorts] there at the highs [lows] for BTC with that volume of people FOMOing in. Wouldn’t be surprised if they puke positions soon. Sometimes you need to look at your charts in a different way.”
Looking at Pentoshi’s inverted BTC chart, it appears Bitcoin printed a bearish lower-high setup, suggesting that a move to at least $36,000 is likely.
At time of writing, Bitcoin is trading for $29,206, above Pentoshi’s key level of $28,500.
Looking at Ethereum, the crypto strategist believes that ETH is poised for a relief rally. However, he highlights that he sees Ethereum taking out support at $1,700 in the coming months, possibly before the leading smart contract platform’s shift to a proof-of-stake consensus mechanism scheduled in August.
“For the people asking. Short term, in my opinion, up. But before the Merge, we take out this heinous crime of equal lows on ETH.
I’ve yet to ever buy mine back that I sold at $4,100 (yes missed all ETH rallies) including the big one to $3,600. I made $0 on that.
In summer. these [get] taken out, in my opinion.”
At time of writing, Ethereum is changing hands for $1,981.
As for the crypto markets in general, Pentoshi says that his expected rallies will not last long as he believes the bounce will serve as fuel for the next leg down.
“Sometimes in order for price to make new lows, price must go up first to gather strength. If you are breaking down a door with a hammer, it’s easier to break the door if you swing it back first. I think for new lows, first you must trap late longs.”Don't Miss a Beat – Subscribe to get email alerts delivered directly to your inbox
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