A popular crypto trader thinks that only a miracle can change the trajectory of the two biggest crypto assets by market cap.
The crypto analyst, known by the alias Cred, said in a recent TechnicalRoundup newsletter that Bitcoin (BTC) needs a “close and strong rally” to maintain the support zone held since June 2021. Cred added that if such a rally does not occur, the possibility of further declines will increase.
“With only one week left to the monthly close, May will be closed with a downward breakdown of the macro-scale range, with no close and strong rally. Even if the market recovers after the monthly close, this rally should be considered a bearish test of the $35,000 to $37,000 range, which has turned from support to resistance.
To sum it up, the market needs to form a miraculous rally this week to correct what appears to be a bearish breakout on a monthly and weekly basis. If that doesn’t happen, any rally to the low-mids of $30,000 will be a bearish retest, making further lows much more likely.”
According to Cred, if the range is broken to the downside, Bitcoin could drop more than 50% from the current level in the worst-case scenario.
“If the market continues to trade lower, our downside targets will be around $20,000 in the medium term (200-week moving average, all-time high of the previous cycle) and reasonably low as $14,000 in the monthly time frame.”
Also examining Ethereum (ETH), Cred thinks the second largest crypto asset needs a strong rally before the end of May. According to Cred, Ethereum needs to close above $2,300 to avoid breaking the support zone it has been closing above since April 2021.
“Ethereum has a macro range, the range looks like it has been broken to the downside (waiting for next week’s close), the break is bearish until there is a strong move above the support. For Ethereum/Dollar, this would require a monthly close above $2,300.”
Cred added that if the second-largest crypto-asset experiences a range break, it could drop over 40% from current levels.
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Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, KoinFinans and the author of this content cannot be held responsible for personal investment decisions.