A closely followed crypto strategist is issuing an alert that it’s “do-or-die” time for king crypto Bitcoin (BTC).
The pseudonymous analyst Cred says that Bitcoin is currently trading in a wide range between $18,000 and $22,000, with a midpoint at around $20,300.
According to Cred, Bitcoin’s recent rally has allowed the king crypto to break above the range midpoint. However, he’s concerned that Bitcoin is spending a lot of time just slightly above $20,300, indicating that BTC bulls are having difficulty sustaining the surge.
“I’m not immediately a fan of the market just coming back, getting stuck at the larger timeframe range midpoint ($20,300), spiking the high ($21,000) and then all the way back to retest the breakout ($20,300). The best breakouts are the ones that just break and go. In this case, it’s slowed down at an area where I wasn’t expecting it to slow down… There’s no real-time, space or distance built between the breakout and the retest. I’m not generally a fan of those types of structures.”
According to Cred, Bitcoin is in big trouble if it closes below the $20,300 price area on the daily timeframe. The crypto strategist highlights that if the king crypto corrects below the key price area, Bitcoin’s market structure turns bearish as the recent rally will likely be seen as a huge trap set for BTC bulls.
“[The move above $20,300] becomes the failed breakout or deviation. If the market closes through here ($20,200) and that is accepted back below the range boundary, [price action above $20,300] this ends up being your excess or deviation and then you target the other side of the range, which in this case would be the range low at $18,000 or $19,000.“
Cred says that while the $18,000 range has offered decent support for BTC over the last few months, he believes that the demand area will likely no longer hold in case Bitcoin witnesses another sell-off event.
“My personal view is that given how much time we’ve spent at this range low ($18,000)… We’ve spent all the time in the world bouncing off of $19,000 or thereabouts. I’m not sure that level would survive another test on the back of a high timeframe failed [breakout]… This ($23,000) is a do-or-die area.”
At time of writing, Bitcoin is swapping hands for $20,500, flat on the day.
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