A popular crypto strategist is highlighting Bitcoin’s (BTC) ability to hold current price levels in the face of a major black swan event.
The pseudonymous analyst known in the industry as Cred says Bitcoin is flashing relative strength despite the collapse of crypto exchange FTX.
At its height, FTX was considered the third-largest crypto exchange in the world, just behind Coinbase and Binance.
“I understand that argument of relative strength that it’s holding up given the magnitude of what’s happening. If you’re going to make a bullish argument, it basically has to be that. We had the worst news that was fathomable and unfathomable yet the market is still kind of range bound on the daily [chart]. So someone’s willing to soak it up.”
While the crypto strategist notes the presence of buyers at current levels, he argues how it’s also possible that market participants are just slow to react to the news.
“Whenever I get into that type of thinking, which I think is a reasonable premise, my paranoid mind basically starts going, ‘What’s if it’s just inefficient and if it’s lag? And it’s not relative strength, it’s just the market is gridlocked?’ [What if] no one knows what’s going on and the people panic late and the prices we’re seeing aren’t ‘efficient’ and that type of thing and then it eventually catches up and looks sort of obvious in hindsight?”
According to Cred, his concern about price action catching up to the news would be dispelled if Bitcoin manages to creep up even if the crypto markets get hammered with negative events. But as for now, the crypto analyst says it is probably too soon to make a solid bullish case for Bitcoin.
At time of writing, Bitcoin is swapping hands for $16,703, flat on the day.
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