A popular crypto strategist and trader predicts that Bitcoin will start a rally above $50,000 but warns that BTC may not continue to rise. Pentoshi, the pseudonymous crypto analyst, said he expects Bitcoin (BTC) to show a lower setup above $50,000 before continuing the downtrend.
What awaits Bitcoin (BTC)?
Cryptocoin. com
According to the information , the trader says:
I think we’re going to Michael Saylor’s BTC average in 2022. But first there will be a lower high in the macro. The override is the same override we’ve had since the all-time high breakout: $58,000 to over $60,700. Selling a higher high is a very good risk reward for both parties in my opinion. Minimum opportunity cost, maximum reward.
According to Pentoshi’s chart, Bitcoin is currently in a downtrend and looks set to revisit the macro range below $30,000 by May 2022. In the short term, however, the crypto strategist says the $40,700 support should persist as the critical price area has acted as a strong resistance level for most of 2021. In technical analysis, when an asset captures a strong resistance area, the price level is often converted to support as the bulls are expected to defend their hard-won territory. While Bitcoin is starting a relief rally, Pentoshi believes altcoins will either trade sideways or fall further, suggesting that BTC will pull most of the liquidity from the crypto markets. Pentoshi says:
Now that alt/USD and alt/BTC [market] structure are both breaking, I think the maximum pain will be when BTC bounces off, alt/USD gets stuck in pivots and Bitcoin reaches a lower top while alt/BTC bleeds out. BTC. Every time D [BTC Dominance] hits the ‘sell’ button, the market suffers.