A widely followed crypto strategist says Bitcoin (BTC) looks vulnerable to a sell-off event after losing a key price level.
Pseudonymous analyst Credible Crypto tells his 340,700 Twitter followers that he thinks Bitcoin is in a position to see one more leg down as it continues to trade below resistance at $27,000.
According to the trader, Bitcoin’s recent weakness could lead to a liquidation event that sees BTC trading below $25,000.
“A little more neutral now in terms of direction on BTC now – the RED level holds the key, in my opinion.
Reclaim it, bottom may be in.
Fail to reclaim, and we likely go for a flush of our lows into the GREEN line at $25,000 with some wicks lower depending on momentum/liquidations. This would be the final flush under $25,000 I have been mentioning in previous posts and vids that we haven’t been able to rule out yet.
Remember – a final flush is HEALTHY as long as we stay above $20,000-ish.”
At time of writing, Bitcoin is trading for $26,883, still below the trader’s key price area.
Credible Crypto holds a contrarian view that Bitcoin will likely witness a massive surge this year on its way to a fresh all-time high. In April, the trader predicted that Bitcoin will break the six-figure mark before the end of 2023.
Generated Image: Midjourney
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