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)? According to the information reached by
Kriptokoin.com , the trader says:
I think we are 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: over $58,000 – $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 acts 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. As Bitcoin kicks off a rally of relief, 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 both alt/USD and alt/BTC [market] structure is breaking, I think the maximum pain is when BTC bounces, alt/USD gets stuck in pivodollarsars and alt/BTC bleeds to a lower Bitcoin. It will be when it reaches the top. Every time BTC.D [BTC Dominance] hits the ‘sell’ button, the market suffers.