Crypto Strategist Sees Bullish Potential for Bitcoin Despite Bearish Trend

Cheds, a crypto strategist known for his accurate Bitcoin predictions, recently discussed the ongoing bearish trend and the potential for Bitcoin to maintain its bullish stance despite the downturn.

Cheds noted that the recent break below the crucial $90,000 support level has given Bitcoin bears the upper hand. To prevent a deeper decline, he emphasized the importance of defending the next key support zone around $72,000.

Reflecting on past market behavior, Cheds recalled how Bitcoin’s failure to hold above the SMA50 in December 2021 led to a massive price drop from $48,000 to $16,000 within a year.

To avoid repeating this scenario, he outlined a potential path to recovery: a rapid, temporary dip below the Bollinger Band, forming a wick, followed by a strong bounce back above the SMA50.

READ MORE:

Crypto Leaders Push for Stablecoin Interest as Lawmakers Debate Regulations

According to Cheds, this kind of quick rebound, akin to the V-shaped recovery seen in August 2024, would be the ideal outcome. He believes that such a reaction would indicate strong buying pressure, helping Bitcoin maintain its long-term upward trajectory.

For Cheds, the key lies in how Bitcoin handles the current support levels, with a focus on avoiding a sustained drop below the SMA50.

In technical analysis, a wick represents a brief but intense buying or selling movement, and in Cheds’ optimistic scenario, a lower wick would demonstrate substantial buying interest, signaling that bulls are still in control despite the recent turbulence.

Alexander Stefanov