Popular Crypto Analyst Warns Bitcoin (BTC) Ready to Catch Bulls, Updates Outlook on Ethereum (ETH)
A closely followed crypto strategist believes that Bitcoin (BTC) is setting up bulls to believe that the $20,000 area could be the bottom of the bear market.
Pseudonymous analyst Pentoshi warns his 600,100 Twitter followers that Bitcoin has touched support about $20,000 three times in about a month.
“Things that look safe but aren’t… Can we go up? Yes. Will these almost certainly be driven and or lead to a nuclear bomb. Also yes. These are almost always set up as a trap for too long that builds up over time and thinks it is ‘titan support'”
In technical analysis, bouncing off a support level multiple times suggests that a breakdown is in sight as demand for that particular price range is exhausted.
Pentoshi too says that retail traders likely bought Bitcoin near the top of BTC’s recent rally, indicating more downside risk as late entrants prepare to cut their losses.
“It’s interesting to note that despite people claiming they bought the bottom, most BTC switched owners at $24,000 where spot was distributed.”
The crypto strategist also highlights that Bitcoin is now trading below its 200-week moving average, an indicator that has marked the bottom for BTC during its previous bear cycles.
“BTC weekly 200 moving average enjoyooorrsss.”
At the time of writing, BTC is trading hands at $21,400 while the 200-week moving average hovers above $23,000.
As for Ethereum (ETH), the cryptoanalyst warns that the leading smart contract platform just respected a crucial resistance level, suggesting that the downtrend is very much intact.
“History writes itself. ETH.”
At the time of writing, ETH is trading at $1,642, below Pentoshi’s marked resistance at $2,000.
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