A crypto strategist known for making timely Bitcoin calls is warning that BTC may have a sudden correction after returning to the $70,000 range.
The pseudonymous trader Cheds tells his 50,500 YouTube subscribers that Bitcoin is facing strong resistance and may enter a downtrend, unless BTC can flip $85,000 into support.
The analyst believes Bitcoin’s move beyond the mid-$80,000 level would confirm a W, or double-bottom pattern. A double-bottom pattern is typically considered a bullish reversal pattern.
“We’ve been following this bounce, doing pretty well. We see a generalized W breaking the peak. Normally, your measured move would get you up [higher]. The issue is the obstacle…
For me to think the bottom’s in we need to flip $85,000. I think a weekly close would be logical.”
Bitcoin is trading for $79,402 at time of writing, down 1.5% on the day.
Next up, the analyst says he is turning bearish on Ethereum (ETH) rival Solana (SOL).
“SOL [had a] big bounce right into range peak. It’s been an underperforming chart. I don’t love it, but you can certainly play this level for a trade on a break of $95, $96. I’d probably short here, though, because it’s a downtrend bouncing into resistance.”
Solana is trading for $91.17 at time of writing, down 3.7% in the past 24 hours.
He also warns that ETH needs to hold $2,150 as support to avoid a massive collapse.
“We know [ETH is] weak to Bitcoin. We see that in the pair. I don’t need the Ethereum/BTC pair to just see the weakness here and continued inability to break $2,400. It needs to hold $2,150 on what looks to be a pending retest or it is headed for Goblin Town (a severe correction). So I would just watch these two levels closely.”
ETH is trading for $2,259 at time of writing, down 1% on the day.
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