In a new strategy session, crypto analyst Cred says Bitcoin is now likely to revisit its 2022 lows after Bitcoin went below its breakout level of $22,562.
“As you know, failed breakout patterns are generally bearish… Assuming the market closes below the range high again, your targets tend to be the range mean or the range midpoint ($21,000) as the first trouble area, and then the range low after that ($17.600).”
Although Cred is currently bearish on BTC, he says Bitcoin’s short-term trend could change if bulls manage to recapture the breakout point at $22,562. According to the analyst, the recovery of $22,562 is a solid bullish signal that will likely result in an upside continuation.
At time of writing, Bitcoin is changing hands for $21,244, down less than 1% on the day and slightly above Cred’s range midpoint.
Looking at Ethereum, Cred says ETH is likely to give up its recent gains and return to its range between $1,000 and $1,250 now that it’s trading below the crucial level of $1,500.
“Especially with Bitcoin forming a failed range [breakout], I think if [ETH] closes as a swing fail into an engulfing daily close lower, you have to consider price filling in much of the progress that was made over the last few days and trading back close to its Bitcoin-style consolidation.”
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