Popular crypto analyst warns Bitcoin (BTC) is poised to catch bulls and updates Ethereum (ETH) outlook
A closely followed crypto strategist believes Bitcoin (BTC) is setting up bulls to believe the $20,000 area could be the bottom of the bear market.
Pseudonymous analyst Pentoshi warns his 600,100 Twitter followers that Bitcoin has touched support around $20,000 three times in about a month.
“Things that look safe but aren’t… Can we go up? Yes. Will these almost certainly work and/or lead to a nuclear bomb. Also yes. These almost always present themselves as a trap for longs who build up over time thinking it’s ‘Titanium support’.”
Source: Pentoshi/Twitter
In technical analysis, bouncing off a support level multiple times suggests that a breakdown is on the horizon if demand in that particular price area is exhausted.
Pentoshi also says that retail traders likely bought Bitcoin near the top of BTC’s recent rally, indicating greater downside risk as those who got in late prepare to cut their losses.
“It’s interesting to note that although people claimed they bought the floor, most BTC changed hands at $24,000, where the spot was distributed.”
The crypto strategist also highlights that Bitcoin is now trading below the 200-week moving average, an indicator that has marked the bottom for BTC during its previous bear cycles.
“BTC weekly 200 moving average enjoyooorrsss.”
At the time of writing, BTC is exchanging hands at $21,400 while the 200-week moving average is hovering above $23,000.
Regarding Ethereum (ETH), the crypto analyst warns that the leading smart contract platform just held a key resistance level, suggesting the downtrend is very much intact.
“History writes itself. ETH.”
At the time of writing, ETH is trading at $1,642, below Pentoshi’s significant resistance at $2,000.
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