After a strong price increase in recent weeks, Bitcoin (BTC) now appears to be stabilizing. The digital currency has not yet managed to break through its local high of $69,000, reached on October 21. This could well be the highest valuation we see in the near future.
Well-known crypto analyst Credible Crypto is critical of the current market dynamics and warns of a possible major correction.
Outlook according to Credible Crypto
According to Credible Crypto, Bitcoin may first experience a short rise towards $68,000 before it faces strong resistance. Once this resistance comes into view, he predicts a drop to $61,000, which he calls the “last line of defense” for the bulls – the buyers trying to prevent further declines.
If this level does not hold, the analyst warns that BTC could fall further below $49,000. Such a decline would represent a loss of more than 27% from the current price.
Other important levels
Keith Alan, co-founder of Material Indicators, agrees with Credible Crypto’s analysis. He emphasizes that the bulls must defend the 21-week moving average of $62,700. Alan estimates the resistance to be slightly higher than Credible Crypto. It is also important that the 2021 mid-cycle high around $64,950 is broken to prevent further declines.
Long-term expectations
Despite the bearish near-term outlook, Credible Crypto remains optimistic about the long term. He believes that eventually there will be an aggressive breakout to the upside, driven by a domino effect of short liquidations, forcing traders to close out their positions. Once this happens, he expects an explosive rise in the Bitcoin price without a pullback.
Source: https://newsbit.nl/crypto-analist-waarschuwt-bitcoin-koers-kan-dalen-tot-onder-49-000/
