A well-known crypto strategist who is known for accurately predicting Bitcoin trends believes that there is still a possibility for BTC to remain in a bullish market, despite the current bearish momentum.
During a recent strategy session, the trader, known as Cheds, shared with his 49,800 YouTube followers that Bitcoin has been facing pressure from bears ever since it dropped below the crucial support level of $90,000.
Cheds emphasized the importance for Bitcoin bulls to defend the next support level to prevent a potential market collapse similar to what happened in 2021.
“I still believe that the momentum from losing the $90,000 support is weighing on Bitcoin, and there is a high likelihood that we will continue downwards to test $72,000. That’s my base scenario…
I think it’s probable that we will retest the previous range. The key for Bitcoin is to hold the SMA (simple moving average) 50… We saw how crucial this was during the 2021 market top when the price started to drop below the SMA 50. We want to avoid a similar scenario.”
In December 2021, Bitcoin fell below the SMA 50 and lost around 66% of its value, dropping from $48,000 to $16,000 in less than a year.
Cheds outlined a potential scenario for Bitcoin to avoid a similar fate,
“This can be achieved with a strong bounce… A quick dip below the Bollinger Band followed by a recovery, ideally closing back above the SMA 50, testing and holding the $72,000 level. This would allow us to continue with the overall bullish trend on higher time frames…
So, the best outcome for me would be a rapid test and recovery, like a V-shaped rebound, an exaggerated move. Similar to what we saw perhaps in August 2024, with a dip and quick recovery, allowing us to test the previous range without breaking below the MA 50. That would be the ideal scenario in my opinion.”
In his best-case scenario, Cheds mentioned that a lower wick would indicate strong buying pressure in the market.
As of the time of writing, Bitcoin is priced at $75,795, experiencing a decrease of over 7% for the day.
Follow us on X, Facebook and Telegram
Don’t Miss a Beat – Subscribe to get email alerts delivered directly to your inbox
Check Price Action
Surf The Daily Hodl Mix
Generated Image: Midjourney
