The price of bitcoin (BTC) may not drop below $30,000 and instead rise to $100,000 before reaching its lows again.
That is the opinion of the popular trader Credible Crypto, which on May 2 shared an updated view of how BTC price action could play out.
The trader prepares for the lows to “remain unexplored”
As more and more voices predict that the BTC/USD pair will experience a major decline, the bullish outlook remains confined to the long term mainly due to macro factors.
Nevertheless, For Credible Crypto, the pair could equally surprise the market and continue its bull run towards new all-time highs and even six figures.
The reason lies in the historical context.. In previous years, such as in 2019, bitcoin managed to come back to the upside when the market was expecting a capitulation event. It only hit expected lows much later, such as in March 2020, after seeing a macro top, and as such there is every reason to believe it could be similar this time.
In a video using Elliott Waves or Elliott Waves, Credible Crypto charted a move towards a new macro top between $100,000 and $200,000 for the BTC/USD pair before a drawdown could take liquidity at the $30,000 level or so.
“These lows that have built up, we don’t have to take them now, we could very well continue up for the fifth wave,” he explained.
He added that there was “nothing wrong” with expecting lows to be reached after the all-time highs of November 2021.
“But again, based on the context of the market and everything else I’ve seen, I think that’s a little more unlikely; I think it is much more likely that we will leave these lows unexplored and just keep going higher.”
Capitulation may not “happen”
That same conclusion was the basis of the investigation by on-chain analytics platform CryptoQuant on May 3.
Analyzing declining inflows to exchanges, a contributor to CryptoQuant’s Quicktake series argued that traders were not preparing for a “capitulation” and selloff.
Inflows “fell sharply” after January this year, while outflows followed an increasing trend.
“Therefore, If the market is trending as severely as the media is predicting, and there are no terrible events occurring unexpectedly (unpredictable), the action may repeat itself, but capitulation may not occur,” the contributor summarized.
The views and opinions expressed herein are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. All investment and trading involves risk, so you should do your own research when making a decision.
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