A popular crypto analyst known as Crypto Rover is cautioning traders against getting overly bullish on Bitcoin despite recent technical indicators suggesting a potential trend reversal. In a video analysis titled “DO NOT GET FOOLED BY THIS BITCOIN SIGNAL!!!,” Rover highlights the risks still facing the top cryptocurrency even as it shows signs of breaking out of a prolonged consolidation phase.
Bitcoin’s Extended Sideways Trading
According to Rover, Bitcoin has been stuck in a significant sideways trading pattern for over 91 days. While the cryptocurrency has bounced off a strong upward-sloping support line multiple times, it has faced consistent rejections at the upper resistance level.
“Initially, Bitcoin was showing a downward trend with a series of lower lows and highs,” Rover explains. “However, it is now forming higher lows and highs, indicating a potential bullish trend reversal.”
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Upside Targets and Profit-Taking Strategy
If Bitcoin manages to break out from the current consolidation pattern, Rover sees the next target around $75,000. However, the analyst plans to take profits at $74,000 to mitigate risk, despite believing that Bitcoin could potentially rise even higher.
“In case of a breakdown from the current pattern, Bitcoin could fall to $63,000, a significant previous range high,” Rover cautions.
Bullish Market Indicators
Several market indicators are pointing to a bullish sentiment among traders. Funding rates are currently high, suggesting optimism among market participants. Additionally, the liquidation heat map shows significant short liquidations above the current price, indicating a potential short squeeze.
Rover also notes that Bitcoin is forming a bull flag pattern, which could target $110,000 if the cryptocurrency surpasses the current resistance levels.
Altcoin Season on the Horizon?
The analyst also highlights the potential for an altcoin season, citing similarities between Bitcoin’s current dominance pattern and the previous bull market. Furthermore, the upcoming spot Ethereum ETF is expected to catalyze an altcoin season by attracting more investment into Ethereum and other altcoins.
Amid these developments, Crypto Rover’s investment strategy is focused on altcoins with strong narratives, such as those in the AI, DeFi, BRC-20, meme coin, and gaming sectors. The analyst has made significant investments in meme coins, which have shown substantial gains.
While acknowledging the bullish signals, Crypto Rover remains cautious, emphasizing the need for Bitcoin to break above the $72,000 level to confirm a bullish continuation. The analyst also warns that a prolonged consolidation could lead to a more explosive breakout, either to the upside or downside.
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