A closely followed crypto strategist is turning bullish on Bitcoin (BTC), saying a clear breakout pattern is forming for the near term.
Speaking in a live stream with Scott Melker, pseudonymous trader and analyst Cheds says Bitcoin is likely to rally about 5% from its current value.
He says Bitcoin appears to be forming an ascending triangle and predicts BTC will rise to $30,000 before meeting resistance.
“It’s bullish right now. I am more likely to look for a continuation pattern than a reversal. An ascending triangle would be a continuation pattern. And it looks to me, I can just see it. I can draw it. I can just see, okay, we have resistance and we have rising demand. It’s an ascending triangle. So this is just bullish churn. I just see bullish churn is continuing to consolidate nicely…
You have that building buy pressure and that’s kind of how an ascending triangle forms…
It’s just bullish. It’s bullish consolidation. It’s like 80% likely to continue bullish based on the numbers.”
Cheds says another bullish indicator favoring Bitcoin is its recent strong break through the 200-week moving average.
“It’s a big deal man… We’re back up above the 200 [week moving average] and you look at the history of the asset, it’s always held it and this is a really deep dip for it [during the bear market], so for Bitcoin to kind of be back up above it, now you’re back in a confirmed uptrend with the price above a rising 200.”
The crypto trader sets a price range for Bitcoin with a higher of $30,000 and a support level of $25,000.
“I think we look at major resistance $30,000, major support $25,000.”
Bitcoin is trading for $28,375 at time of writing.
Ched also looks at XRP, which remains the focus of lawsuit from the U.S. Securities and Exchange Commission (SEC) against payments firm Ripple.
XRP shot up in price from a low of $0.37 on Monday to a high of $0.49 on Tuesday, and is trading for $0.43 at time of writing.
“You want to see some continuation. You’ve got a little bit of a diagonal trend break. You’ve got your lower-high break. Look at that underside retest on the MA (moving average) 200 weekly and a perfect rejection. So you have a situation where you have basically a sideways chart with a big move…
I probably would go long if it broke above $0.55.”
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