Market

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.

Join Bitcoin Magazine Telegram to keep track of news and comment on this article: https://t.me/coincunews

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.

Follow the Youtube Channel | Subscribe to telegram channel | Follow Facebook page

Annie

Championing positive change through finance, I've dedicated over eight years to sustainability and environmental journalism. My passion lies in uncovering companies that make a real difference in the world and guiding investors towards them. My expertise lies in navigating the world of sustainable investing, analyzing ESG (Environmental, Social, and Governance) criteria, and exploring the exciting field of impact investing. "Invest in a better future," I often say. That's the driving force behind my work at Coincu – to empower readers with knowledge and insights to make investment decisions that create a positive impact.