Bitcoin is at a critical juncture, according to veteran technical analyst CryptoCred, who sees a potential shift to a bullish market structure. His analysis, shared on X (formerly Twitter), focuses on line charts, which he argues provide a clearer view of market trends by only showing closing prices.
CryptoCred’s analysis reveals that Bitcoin has been forming lower highs on the weekly timeframe, a classic sign of a bearish trend. However, the current price level holds significant importance. He describes it as the “bears’ last stand” and the “last reasonable area where a lower high could form.” This suggests the market is at a pivotal point where the direction could shift significantly.
A weekly close above $64,000, ideally with strong momentum, would mark a bullish break in market structure, according to CryptoCred. This event would have several implications for his trading system, including a shift to a higher timeframe bullish bias. He outlined three potential trading strategies in this scenario:
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Holding long positions on lower timeframes for extended periods with wider targets.
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Entering positions at the weekly close if a strong signal appears.
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Seeking medium timeframe pullback entries to establish positions at higher lows.
CryptoCred cautions that while the market is currently facing local resistance within a bearish weekly structure, a failure by bears to maintain control could have significant technical implications. He advises traders to have a plan ready for either scenario.
Ali Martinez, another crypto chart analyst, emphasizes the importance of the 200-day Simple Moving Average (SMA) for Bitcoin. He notes that this level has historically been a critical indicator for confirming bull runs. When Bitcoin failed to reclaim this support in the past, it led to significant corrections, as seen in 2020, 2018, and 2014. Martinez warns that a rejection at this level could signal trouble for Bitcoin.
The upcoming Benzinga Future of Digital Assets event on November 19 will delve into the growing influence of Bitcoin as an institutional asset class.
