A notable analyst has pinpointed a critical juncture for shorting the Bitcoin market, signaling a potential downturn for the world’s leading cryptocurrency. Bitcoin has recently engineered praiseworthy trajectories, climbing to a height of $48,600.
However, the asset struggles to maintain the $48K range, having crashed to as low as $47,770 in the last 24 hours. Consequently, the analyst from the Cheeky Crypto YouTube channel weighed in on the current state of the Bitcoin market, hinting at the possibility of impending breakouts.
Specifically, the analyst outlined the critical thresholds for bullish and bearish scenarios, noting concerns about a rising wedge pattern. For the bulls, the focus lies on breaching the resistance zone spanning from $47,115 to $48,969. According to the analyst, this zone marks the battleground where bulls strive to establish a new local high.
He forecasted that a weekly candle close above $48,969 could be paramount for bullish sentiment to prevail. Notably, data from CoinMarketCap suggests that Bitcoin closed the week at $48,293.
Furthermore, the analyst emphasized that since a higher range for BTC has been tested, the bears are primed to drive the price of Bitcoin downward. He proposed that their target would be the lower trend line of the support range, approximately around $45,500.
According to him, the rationale is that $45,500 acted as a former area of resistance that briefly transitioned into support before being lost. Besides, the analyst noted that the target range harbors considerable buying pressure.
Given that a decline from Bitcoin’s present value to the $45,000 range represents a notable 6% downturn, the analyst asserted that Bitcoin’s current price, hovering slightly below $48,000, might present a suitable entry point for shorting BTC.
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