Crypto Strategist Sees Path for Bitcoin to Remain in Bull Territory Despite Bearish Momentum
A well-known crypto strategist, renowned for his accurate Bitcoin predictions, believes that there is still hope for Bitcoin to stay in bull territory, despite the current surge in bearish momentum.
Defending Support Levels
Cheds, a pseudonymous trader with a large following on YouTube, points out that Bitcoin bears have been dominating the market ever since BTC dropped below the crucial support level at $90,000. He emphasizes the importance of defending Bitcoin’s next line of support to prevent a potential repeat of the market collapse seen in 2021.
In his recent strategy session, Cheds states, “I still remain in the camp that we still have the momentum overhang from losing $90,000 support, and it’s very likely we’re going to continue down and tag $72,000. And that’s my base case…”
He further adds, “What we want to see in Bitcoin is we want to see it hold the SMA (simple moving average) 50… We know that’s important because that was something that played a big role in the 2021 top when the price started to lose that SMA 50. We don’t want to see that happen.”
Avoiding a Repeat of History
Cheds draws parallels to Bitcoin’s previous market crash in December 2021, where it went below the SMA50 and lost a significant portion of its value. To prevent a similar fate, he suggests a quick test and recovery scenario, where Bitcoin experiences an overreaction move, testing the prior range without losing the MA50.
He explains, “A nice wick below the Bollinger Band and a recovery, like an intraweek recovery would be nice, where we close back up above the SMA50, we tag and test and hold this prior level ($72,000), then we can continue with the trend, the more high time frame trend which is bullish…”
Market Conditions
As of the current writing, Bitcoin is trading at $75,795, showing a decline of over 7% for the day. The market remains volatile, with both bulls and bears vying for control.
Conclusion
In conclusion, while the bearish momentum is strong, Cheds sees a potential path for Bitcoin to stay in bull territory if certain support levels are defended and specific recovery scenarios play out. Traders and investors are advised to closely monitor the market and be prepared for various outcomes.
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