Top Crypto Analyst Predicts Bitcoin (BTC) Rally Above $50,000 – But There’s a Catch

A popular crypto strategist and trader is predicting that Bitcoin will ignite a rally above the $50,000 but warns that BTC may not be able to sustain its ascent.

Pseudonymous crypto analyst Pentoshi tells his 462,300 Twitter followers that he expects Bitcoin to print a bearish lower high setup above $50,000 before resuming its downtrend.

“We travel to [Michael] Saylor’s BTC average in 2022, in my opinion. But a lower high on the macro first. At least the way it looks for now. Invalidation is the same invalidation we’ve had since all-time high breakdown: above $58,000 – $60,700. Selling a lower high is such a good risk reward on both sides in my opinion. Minimal opportunity cost, max reward.”

According to Pentoshi’s chart, Bitcoin is currently in a bearish trend and looks poised to revisit its macro range low below $30,000 by May 2022.

In the short term, however, the crypto strategist says that support at $40,700 should hold as the crucial price area acted as a strong resistance level for most of 2021.

“$40,700. Historical context is so important yet rarely utilized. Where does big money enter and exit?”

In technical analysis, once an asset takes out a strong resistance area, the price level often gets converted into support as bulls are expected to defend their hard-won territory.

While Bitcoin puts up a relief rally, Pentoshi believes that altcoins will either trade sideways or go lower, suggesting that BTC will pull in most of the liquidity in the crypto markets.

“Now that alt/USD and alt/BTC [market] structure are both breaking, max pain, in my opinion, would be when BTC bounces, alt/USD gets stuck on pivots + alt/BTC bleeds while Bitcoin goes to a lower high then dumps, where alts make lower lows on both pairs following that. Every time BTC.D [BTC Dominance] hits ‘sell,’ market finds pain.”

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The post Top Crypto Analyst Predicts Bitcoin (BTC) Rally Above $50,000 – But There’s a Catch appeared first on The Daily Hodl.

Source: https://dailyhodl.com/2022/01/10/top-crypto-analyst-predicts-bitcoin-btc-rally-above-50000-but-theres-a-catch/