A closely followed cryptocurrency analyst and trader said that Bitcoin’s (BTC) recent correction below $40,000 laid the groundwork for BTC to rally to $50,000 in the coming weeks.
Anonymous analyst Credible says that Bitcoin’s rejection at $45,069 on March 2 shows that BTC is trading in a triangle pattern while drawing a bottom.
“The depth of this retracement means that if this is a triangle structure, now a standard triangle instead of running (as at $10,000), our wave B is probably complete. The demand for $38,000 per day is still key for this idea to remain viable.” According to
Credible, the bullish thesis is based on the market structure when BTC was trading below $10,000 from September 2020 to October 2020. The crypto strategist says that the triangle pattern formed during this time preceded Bitcoin’s massive rally from $10,000 to $60,000.
“The last segment of our corrective structure before the third wave of impulses from $10,000 to $60,000 was a triangle. It would be nice to see something similar here. Note that a longer sole typically leads to a stronger impulse. Retracements to $38,000 – $42,000 in BTC are healthy.”
Credible expects Bitcoin to continue to consolidate in the coming days, while BTC’s recent move above $44,700 is significant, with the possibility of the leading cryptocurrency breaking $30,000 support. underlines the significant reduction.
BTC was trading around 38,100 at the time of writing.
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