A widely followed crypto strategist is mapping out what’s in store for Bitcoin (BTC) after the implosion of crypto derivates exchange FTX.
Pseudonymous analyst Cred tells his 518,300 Twitter followers that in the aftermath of FTX’s collapse, only two price levels matter for Bitcoin.
“The first is this $20,000 price cycle high, which [has been] our range low for a few months. The next is this pre-bull market breakout shelf closer to $11,000 or $12,000.”
According to Cred, Bitcoin looks generally bearish at the moment after consolidating around $20,000 for months only to break down following FTX’s meltdown. However, the popular strategist says that BTC bulls can still regain control of the market.
“If the breakdown fails and [BTC] ends up reclaiming the level [$19,300] where the breakdown took place, that would suggest that the market wasn’t willing to accept those lower prices. The breakdown gets soaked up by willing buyers and then we can deal with this [breakdown] as some sort of deviation… [That] would show the conviction of someone willing to absorb this type of news, this type of environment and so that’s some strength worth paying attention to.”
Should BTC bulls fail to take the reigns, Cred says that Bitcoin will likely plunge toward its next high timeframe support around $12,000.
“The other scenario is if [BTC] ends up back in this resistance [$19,000], so we just consolidate here and rollover. The level where I think it’s worth doing business is close to this $11,000, $12,000 handle… If it wants to fill back to this pre-bull market shelf of $11,000, $12,000, that’s really a fresh level. It’s also historically aligned with where a lot of cyclical drawdowns tend to slow down.”
At time of writing, Bitcoin is changing hands for $16,825, up 1.09% on the day.