BTC will perform a dead cat bounce on $ 50,000, according to KOL Pentoshi

A prominent analyst predicts that Bitcoin will trigger a rally above $ 50,000, but warns that it will be a dead hop.

The person known in the industry as Pentoshi told his 462,300 Twitter followers that he expected Bitcoin to hit a lower high at around $ 50,000 before resuming its downtrend.

“In my opinion, Bitcoin will bounce off current levels and hit a lower macro top first. This will be voided on a breakout above the $ 58,000 to $ 60,700 zone. Selling at this lower high would offer a good risk premium for both sides in my opinion. Minimum opportunity cost, maximum reward ”.

Bitcoin / USDT 3-day chart | The source: Pentoshi / Twitter

Bitcoin is currently in a downtrend according to the Pentoshi chart and is expected to retest the $ 30,000 region.

For the short term, however, the crypto strategist says the USD 40,700 support area will hold as it has acted as a strong resistance line for much of 2021.

“$ 40,700. Played a very important role in the story. A place that attracts a lot of money. “

In technical analysis, when an asset breaks out of a strong area of ​​resistance it is often converted into support as the bulls aggressively defend their hard-won territory.

As Bitcoin goes on a relief rally, Pentoshi believes altcoins will trade sideways or down, suggesting that BTC will soak up most of the liquidity in the crypto market.

“Currently the structure [thị trường] of Alt / USD and Alt / BTC are both broken in my opinion, if BTC recovers, Alt / USD gets stuck in the range + Alt / BTC will bleed. The altcoin will then be discarded when the BTC drops. Every time BTC.D [BTC Dominance] touching the strong support area, the market will have trouble ”.

BTC.D 3-day chart | The source: Pentoshi / Twitter

You can see the Bitcoin price here.

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Disclaimer: This article is for informational purposes only, not investment advice. Investors should research carefully before making a decision. We are not responsible for your investment decisions.

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