Top trader says Bitcoin (BTC) now in clear uptrend with new breakout pattern, updates XRP Outlook
A closely followed crypto strategist is turning bullish on Bitcoin (BTC), saying a clear short-term breakout pattern is forming.
In a live broadcast with Scott Melker, the pseudonymous trader and analyst Cheds says that Bitcoin is likely to increase by around 5% from its current value.
He says that Bitcoin appears to be forming an ascending triangle and predicts that BTC will rise to $30,000 before meeting resistance.
“It’s bullish right now. I’m more likely to look for a continuation pattern than a reversal. An ascending triangle would be a continuation pattern. And it seems to me, I can just see it. I can draw it. I can just see, okay, we have resistance and we have increasing demand. It is an ascending triangle. So this is just bullish churn. I just see the bullish churn continuing to consolidate nicely…
You have that building buying pressure and that’s kind of how an ascending triangle forms…
That’s just bullish. It is bullish consolidation. It’s like 80% likely to continue bullish based on the numbers.”
Cheds says another bullish indicator favoring Bitcoin is its recent strong break through the 200-week moving average.
“It’s a big deal man… We’re back up over 200 [week moving average] and you look at the history of the asset, it’s always held it, and this is a really deep dip for that [during the bear market]so for Bitcoin to be kind of back up above that, now you’re back in a confirmed uptrend with the price above a rising 200.”
The crypto trader sets a price range for Bitcoin with a high of $30,000 and a support level of $25,000.
“I think we’re looking at major resistance $30,000, major support $25,000.”
Bitcoin is trading at $28,375 at the time of writing.
Ched is also looking at XRP, which remains the focus of a lawsuit by the US Securities and Exchange Commission (SEC) against payments company Ripple.
XRP shot up in price from a low of $0.37 on Monday to a high of $0.49 on Tuesday and is trading at $0.43 at the time of writing.
“You will see some continuation. You have a small diagonal trend break. You have a break from low-high. Look at that retest on the downside at MA (moving average) 200 weekly and a perfect rejection. So you have a situation where you basically have a sideways chart with a big move…
I would probably go long if it broke above $0.55.”
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Featured image: Shutterstock/Helen Pazyuk/WindAwake
