The strategist Cred believes the recent Bitcoin (BTC) price correction could just be a big bear trap.
In a new strategy session, the analyst says it is likely that Bitcoin is currently eliminating a weak hand below $ 60,000 before exploding in an epic rally.
“The only important level is the week high of $ 59,000. BTC concluded about it. It’s a price hike. The market is trading lower right now, possibly pulling back to last week’s lows around $ 54,000, but given the positive closing price, a bear trap at that low and then a bounce above is more likely. The first difficult area is around $ 60,000 and then the all-time high. ”
Bitcoin 1W diagram. Source: Credo
The strategist believes Bitcoin has about a week to close above the high range around $ 60,000 and confirm a bear trap.
“In the most optimistic case, not only the rescue week, but also the monthly and weekly. The current price campaign is only a partial wick. ”
However, Cred said that BTC could trigger a sell-off event if it fails to regain key levels by the end of the month.
“But failure to regain key levels would result in a failed breakout on the monthly and weekly charts, closing a high in the previous area ($ 60,000), above and eventually below. In any timeframe, on any chart, whenever such a scenario arises – a real attempt to break out and get back in – the target will be the middle and bottom areas. ”
Bitcoin 1M chart. Source: Credo
According to Cred, Bitcoin’s inability to exit above $ 60,000 in November could result in a market reversal propelling the price towards $ 50,000.
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According to Dailyhodl