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Bitcoin’s Next Move Up Will Be Explosive, Says Crypto Analyst – But There’s a Catch

source-logo  dailyhodl.com 21 September 2023 08:11, UTC

A closely followed crypto strategist is predicting that Bitcoin (BTC) will undergo one more market correction before making a massive move to the upside.

Pseudonymous analyst Credible Crypto tells his 346,700 followers on the social media platform X that Bitcoin will likely dip down to at least the mid-$26,000 level, but remain in an overall upward channel.

“‘Corrective’ structures are typically downward sloping movements that ‘correct’ or retrace a portion of the prior impulse.

‘Impulse’ movements are trending moves that advance price in the direction of the trend.

This is why ‘sideways’ corrections after an impulsive move are so bullish because rather than getting a typical retracement a lack of sellers and strong demand just moves price sideways rather than down until the next impulse. This is a sign of strength.

You know what’s MORE bullish than that?

When a ‘corrective’ structure grinds up and advances price instead of retracing the prior impulse or going sideways. Now instead of going sideways we actually move up, what I like to call ‘vertical accumulation.’ In this case a lack of sellers and consistent demand makes price grind up during corrections, a time when typically we would expect price to move down or even sideways. Remember, this is technically a corrective move (despite how bullish it is moving). So, a move down to anywhere above the start of the impulse it is correcting (the one on the chart I have shown here) is still POSSIBLE.

However, I think the only way we will get there is some extreme volatility and forced selling/liquidations to force us down and through the active buyers below.

All this is to say that the next move up should be explosive regardless of where this correction ends, whether that be in the mid-$26,000’s or lower (if we manage to get some quick liquidations).”

Source: Credible Crypto/X

Looking at his chart, the trader suggests Bitcoin is forming a corrective Elliott Wave W-X-Y pattern that could cause BTC to decline to the $26,600 to $26,400 range.

He also identifies the $28,000 level as a bull market confirmation.

According to the trader, Bitcoin is showing “surprising” strength in holding the $27,000 level in the last few days as Bitcoin’s open interest (OI) for options retraced after a dip.

However, he continues to predict “just another quick move [down] like the last one to shake out some of these recent longs.”

Bitcoin is trading for $27,096 at time of writing, down 0.4% in the last 24 hours.

Generated Image: Midjourney