A popular analyst says Bitcoin (BTC) could remain in an uptrend after an abrupt move up.
Pseudonymous analyst Cred tells are 53,500 subscribers of the TechnicalRoundup YouTube channel that if Bitcoin holds above a key level, it could indicate continued bullish momentum for the king crypto.
BTC rose to $30,000 on Monday after a news site falsely claimed that the US Securities and Exchange Commission (SEC) had approved a Bitcoin exchange-traded fund (ETF) in the spot market.
Says the analyst,
“If this is a daily breakout, it’s obviously messy where it ended up because it’s a very fast move and it’s going into this prior area, the range before the breakout was $29,000, and we’ve actually tapped off $30,000. .But structurally speaking, fake news or not. Whether it goes back or not, as long as the market can hold $28,000 at the daily close, even if this fuse were not there, that would still be a compelling bullish argument.
I think this is a very good way to think about and process this kind of price action. When I take my levels, I close my high time frame. If this fuse were not there, what would my analysis be? And I think there is some merit in that, which is why I still focus on high timeframe levels and candle closes, because they can certainly filter out a lot of the noise that surrounds these types of market events. So the bull-bear line on the weekly and daily markets is $28,000.”
The trader says that if Bitcoin loses the key $28,000 level, it will likely return to the $26,000 range.
“Clearly the bearish peak scenario is that this was just a mega top and should not have happened at all. And we just keep going, just like some of these other moves we had, basically a big, outrageous move, that doesn’t go anywhere and then bleeds and comes back.
Bitcoin is trading at $28,496 at the time of writing.
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Generated image: Midjourney