A crypto strategist known for making timely Bitcoin calls says BTC must clear one price area to signal the beginning of a fresh leg up.
In a new video, pseudonymous analyst Credible tells his 69,000 YouTube subscribers that he’s looking at Bitcoin’s immediate resistance at $94,000.
According to the analyst, Bitcoin’s downside momentum will likely persist as long as BTC trades below what he believes is a “local supply” zone.
“We’re looking for some sort of a bottoming structure to form here, some sort of a shift in market structure for a potential reversal to the upside. And that gets confirmed once we clear this local supply here (at $94,000).
And most importantly is seeing an impulsive move to the upside. And yes, sometimes they can be tricky to spot or identify… So we’re looking for again [an] impulsive move to the upside, ideally breaking local supply, and that is our indication that we’ve started the next leg to the upside.”
An impulsive rally in this case is based on Elliott Wave theory, which states that a bullish asset tends to witness a five-wave surge where waves one, three and five are upside moves and waves two and four are corrective periods.
Looking at the trader’s chart, he seems to predict that BTC will soar close to $104,000 if it takes out resistance at $94,000.
While Credible believes it is within the realm of possibility for BTC to end its downtrend after bouncing from a low of $76,000, he notes that Bitcoin’s heatmap indicates thick sell orders at around $86,000 with heavy demand below $84,000.
A heatmap tracks existing buy and sell orders on a crypto exchange order book.
“Something’s gotta give.”
At time of writing, Bitcoin is trading for $84,374.
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