A prominent crypto analyst and trader is issuing a warning to Bitcoin investors and traders alike as the leading cryptocurrency prints a new 90-day high above $50,000.
The crypto strategist, known in the industry as Credible, tells his 228,100 followers that he sees Bitcoin pulling back as it inches close to a crucial resistance area.
“As we approach key resistance between $52,000 – $60,000, it is time to be cautious. While it’s possible we break through, this region is the MOST LIKELY place to see a correction if we are going to get one. Also, funding has flipped positive for the 1st time since our $28,000 bottom.”
According to the trader’s chart, Bitcoin is likely to revisit support around $42,000 before igniting a new rally that could send the king crypto above $60,000.
The crypto analyst is also looking at XRP, which he says is in the midst of a retracement after hitting a 90-day high of $1.35.
“I’m seeing this as a pretty clean five-wave impulse to the upside, which means that this wave two, to the downside, this correction, is a buy opportunity. Official invalidation is going to be here at the lows at $0.69… We have our daily support right here ($1.07) which is this level that acted as resistance that we flipped, so it’s going to act as support. Below that, we have the wick zone (around $1), which is the bullish order block that led to the breakout…
I’d like to ideally see a wick into this region but no daily closes below our daily support.”
Credible’s predictions are based on the Elliott Wave theory, a technical analysis approach that forecasts price action by following the psychology of market participants that tend to manifest in waves.
After the wave two correction, the crypto strategist anticipates XRP rallying to his initial target at $1.50.
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Featured Image: Shutterstock/Roman Sigaev