A popular crypto strategist and trader is predicting that Bitcoin will ignite a rally above the $50,000 but warns that BTC may not be able to sustain its ascent.
Pseudonymous crypto analyst Pentoshi tells his 462,300 Twitter followers that he expects Bitcoin to print a bearish lower high setup above $50,000 before resuming its downtrend.
[adinserter block="1"]“We travel to [Michael] Saylor’s BTC average in 2022, in my opinion. But a lower high on the macro first. At least the way it looks for now. Invalidation is the same invalidation we’ve had since all-time high breakdown: above $58,000 – $60,700. Selling a lower high is such a good risk reward on both sides in my opinion. Minimal opportunity cost, max reward.”
According to Pentoshi’s chart, Bitcoin is currently in a bearish trend and looks poised to revisit its macro range low below $30,000 by May 2022.
In the short term, however, the crypto strategist says that support at $40,700 should hold as the crucial price area acted as a strong resistance level for most of 2021.
“$40,700. Historical context is so important yet rarely utilized. Where does big money enter and exit?”
In technical analysis, once an asset takes out a strong resistance area, the price level often gets converted into support as bulls are expected to defend their hard-won territory.
While Bitcoin puts up a relief rally, Pentoshi believes that altcoins will either trade sideways or go lower, suggesting that BTC will pull in most of the liquidity in the crypto markets.
“Now that alt/USD and alt/BTC [market] structure are both breaking, max pain, in my opinion, would be when BTC bounces, alt/USD gets stuck on pivots + alt/BTC bleeds while Bitcoin goes to a lower high then dumps, where alts make lower lows on both pairs following that. Every time BTC.D [BTC Dominance] hits ‘sell,’ market finds pain.”
Don't Miss a Beat – Subscribe to get email alerts delivered directly to your inbox
Surf The Daily Hodl Mix
Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any assets including cryptocurrencies, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
Featured Image: Shutterstock/Jorm S/Velishchuk Yevhen
