A noted crypto strategist is weighing the potential downside move for Bitcoin (BTC) after the King cryptocurrency climbs above $27,000.
Pseudonym Analyst Credible Crypto To tell 345,900 followers on social media platform
“I have marked the most important levels of this chart here.
- Blue level (approx. $26,400): Official confirmation of upcoming decline.
- Orange Level (approximately $25,600): An ideal downside target for this dip.
- Red level (approx. $24,900): Bullish deactivation, should not fall below.
How low will it go? It all depends on how far momentum can push us. ”
The trader said he focuses on Bitcoin options open interest (OI) as one indicator of near-term market bottoms.
“One of the metrics to keep an eye on is OI. You can see it on the chart [above] We can see that less than half of the increased OI in this pump has been closed so far. If we fall below BLUE, it should cause some liquidations to push us towards ORANGE and OI should start closing (indicating those who were just hoping to get washed out). When the OI from this pump fully resets, it’s probably a good sign that most of the downside is done. ”
According to the trader, the King cryptocurrency remains on track to form a bullish cycle if Bitcoin stays above $24,900 in the near term.
“In a perfect scenario, we would take out all the liquidity below the orange, but keep the bullish market structure intact and keep the red above. Let’s see how things develop.”
The trader also said that Bitcoin could: shape A corrective Elliott Wave WXY pattern could push the King cryptocurrency down to the $25,000 range before breaking out above $28,000, confirming a bull market.
According to the trader, Bitcoin is unlikely to fall in the short term. Overcome Resistance after retesting is at the $27,000 level.
“Note that we have now reached actual resistance, so technically we will return to the line of least resistance in the short term.
According to the last video update, if you clear $28,000 you will get a FULL BULL.
Until then, it makes sense to be a little cautious as there is logical resistance at $27,000. ”
BTC is trading at $27,368 at the time of writing, up 0.2% in the past 24 hours.
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