A widely followed crypto strategist and trader is predicting a bearish period for Bitcoin (BTC) over the short term.
Pseudonymous crypto strategist Credible Crypto tells his 340,500 Twitter followers that Bitcoin is set to fall.
According to Credible Crypto, Bitcoin is currently below a critical resistance level after a rally that came about as a result of a short squeeze during the US Memorial Day weekend.
The analyst says that while Bitcoin could edge higher, he will only change his stance from bearish to bullish if the Chicago Mercantile Exchange (CME) gap just above the $29,200 area is reclaimed.
“BTC is currently trading UNDER a key resistance zone after a primarily short-squeeze driven move up during a low liq long weekend with near equal lows below and aggregate Open Interest at $9 – $9.2 billion (danger zone).
We are ripe for a flush down in my opinion.
May trade a bit higher into supply and/or to tap that small CME gap above but until/unless we get a decisive reclaim of the red zone I have to lean short-term bearish here.”
CME gaps are a discrepancy between the spot price and futures price of Bitcoin. They occur when the futures price of Bitcoin opens below or above the previous day’s closing price on the Chicago Mercantile Exchange – this happens since the CME is closed over the weekend and federal holidays while the spot market operates nonstop.
Turning to Ethereum (ETH), the crypto analyst says that the chances of the second-largest crypto asset by market cap reaching his “ideal upside target” of above $2,000 will depend on Bitcoin’s price action going forward.
“We got some relief on ETH as expected, haven’t quite hit the ideal upside target but whether we get there or not will also depend on BTC here as it is at an inflection point in my opinion. If BTC melts down I don’t expect ETH to reach the ideal upper target here before heading down. If BTC can hold here and continue to grind up, the relief on alts like ETH should continue.”