A prominent cryptocurrency strategist with a significant following anticipates that Bitcoin (BTC) will experience another market correction before embarking on a substantial upward trajectory.
Operating under the pseudonym Credible Crypto, this analyst shares insights with their 346,700 followers on the social media platform X. Credible Crypto suggests that Bitcoin is likely to retreat to at least the mid-$26,000 range but will maintain an overall upward trend.
Credible Crypto explains that “corrective” patterns typically involve downward movements that “correct” or retrace a portion of the previous significant price surge. These “impulsive” movements represent price advances in the direction of the prevailing trend. What’s particularly bullish, according to the analyst, is when corrections take the form of sideways movements following an impulse. Instead of the typical retracement, a lack of sellers and strong demand keep prices moving sideways until the next impulse, indicating robust market strength.
Even more bullish, as per Credible Crypto, is when a “corrective” pattern ascends and propels prices upward, rather than retracing the preceding impulse or moving sideways. This phenomenon, referred to as “vertical accumulation,” occurs when a lack of sellers and consistent demand causes prices to grind higher during corrections, even though corrections are technically meant to move prices downward. In this context, the analyst acknowledges that a move downward to a level above the starting point of the previous impulse correction is still a possibility.
However, Credible Crypto speculates that the only way this scenario might transpire is through extreme volatility and forced selling or liquidations, which would push prices down and through the active buyers situated below. Despite the potential range for this correction’s end, the analyst remains confident that the next upward move will be explosive, no matter where the correction concludes, be it in the mid-$26,000s or lower (if quick liquidations materialize).
Analyzing the chart, the trader indicates that Bitcoin is in the process of forming a corrective Elliott Wave pattern denoted as W-X-Y, potentially leading to a decline within the $26,600 to $26,400 price range.
Furthermore, the trader pinpoints the $28,000 level as a critical threshold for confirming a bull market.
The trader highlights Bitcoin’s remarkable resilience in maintaining the $27,000 level over the past few days, despite a retracement in Bitcoin’s open interest (OI) for options following a dip.
Nevertheless, the trader maintains the expectation of “yet another swift downward movement,” akin to the recent one, aimed at shaking out some of the recent long positions.
As of the current writing, Bitcoin is trading at $27,096, reflecting a 0.4% decrease in the past 24 hours.