Bitcoin establishes unexpected bullish momentum
A famous analyst is to explain why bitcoin could be on the verge of breaking out after 2 months of disappointing performance.
Trader Credible Crypto spoke about the overall market sentiment towards Bitcoin following the bull run from $33,500 to nearly $39,000 in late January.
“Many expect a rejection around $40K-$44K and then a drop below $30K. I forecast a pullback at $40k-44k but still expect to hold $30k-32k and then break out above $50k. However, it would be great if BTC breaks $40,000-$44,000 in the first bull run.”
Source: Credible Crypto
According to him, those who follow the BTC chart don’t even realize that the breakout they are looking for is actually happening.
“It is not easy to see BTC starting a new momentum until it becomes very clear. I mean, BTC is getting some boost, so some consolidation is happening.
At this point, people think, “We have a supply. We will sell and the price will go down from here.”
But in reality, when BTC builds its next momentum, the price will consolidate, grow, and keep going up, with positive upside moves, then consolidation, then stronger moves.
Once we knew what was going on and zoomed out on the chart, wave 5 was on track and breaking out to the upside.”
Credible takes a look at the charts from 2019, when Bitcoin surged from $4,000 to nearly $13,000, to compare this breakout action to what could happen in 2022.
“Just like what happened at $12,000 to $14,000, the key supply area that price undercut is expected to reject that level.
The price dropped again, it was just a dead cat bounce and BTC hit a deeper low. At this point, everyone was like “Bitcoin will go to zero”.
But the idea is for BTC to make a lower low or even drop back to $4,200 to retest that area and then move higher.
Therefore, this is what you should expect after approaching a very important supply area, rather than BTC consolidating here and then exploding, leading to a different dynamic.”
Credible Crypto concludes that it is mentally prepared to fight the recent correction after each rally.
“The general prediction is that BTC will be rejected in these areas, but I was mentally prepared for something like this with no further dips. It is good to be aware of all possibilities.”
Prominent analyst Michaël van de Poppe says Bitcoin has bounced back and forth between rallies and corrections in part due to the strength of the US dollar.
In a new update on YouTube, Van de Poppe to speak why bitcoin corrects from recent lows after strong rally
“BTC had a nice jump from the $32,000 average…to $39,000 or almost $39,000, reversing that trend. Why are they gaining weight?
The dollar weakens after being so much sought after. So, risky markets like bitcoin have some wisdom power. However, not much strength is seen in the course of Bitcoin’s movement as Bitcoin’s volume is gradually decreasing, which does not indicate another very strong bull run.
So that led to the February 3 correction.”
The analyst illustrates Bitcoin’s recent price action with a chart targeting the lows of the $37,000 region for BTC’s next bull run.
“And this is not a breakout for bitcoin, so it will be right. Most likely the first jump into the green zone. In general, still be careful.”
The source: CryptoMichNL
However, if BTC fails to sustain near $37,000, he predicts a possible 8% drop.
“If bitcoin loses $37,000, I think it will quickly drop towards the bottom of the $34,000-$35,000 region.”
Van de Poppe advises bitcoin traders to remain calm and cautious for now.
“So what’s most likely to happen now? I think you should be relatively calm. Look for staking coins. Start collecting slowly as the full range is still a great opportunity. Watch the dollar – what’s happening there? Just play slowly.”
Van de Poppe expects Bitcoin to post massive gains in the near term, although it’s unclear by how much but where the leading cryptocurrency by market cap is finding support. Something like this would make sense for Bitcoin.
The source: CryptoMichNL
Bitcoin is trading at $38,055 at press time, up more than 2% on the day.
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