Esteemed crypto expert CrediBULL Crypto provides a more complex view on Bitcoin’s current market status. Bucking the widespread enthusiasm for bullish trends, the analyst posits that Bitcoin remains ensnared in a “corrective phase,” dispelling the notion that we’re in the much-desired “up only” zone for investors.
The key indicator for this assessment was the local impulse invalidation that occurred before the recent price surge. In layman’s terms, certain technical markers still need to be met, signaling that the upward trend might not be as stable as it appears.
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Path of Least Resistance: A Double-Edged Sword
CrediBULL Crypto also delved into the “path of the least resistance,” a term often used in trading to describe the direction in which an asset is most likely to move. Currently, Bitcoin is at an actual resistance level, making its short-term path of least resistance technically downward. However, the analyst remains optimistic, stating that despite local invalidations, the path of least resistance is still upwards, aiming for a price of 27k or higher.
Local invalidation is when immediate upward price movement is unlikely due to certain market conditions. In this context, the analyst suggests that Bitcoin might temporarily dip into the high to mid 25k’s before making another upward move. This is considered healthy market behavior and is largely dependent on market momentum.
Importance of Market Depth: Bids, Asks, and Binance
Regarding market depth, CrediBULL Crypto points out that the books on Binance—both perpetual and spot—are much more supported on the bid side than the ask. For those unfamiliar, “perpetual trading” refers to a type of futures contract that doesn’t have an expiry date. This means there are more buy orders (bids) than sell orders (asks), especially up to the 27k price point.
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Show more +The analyst emphasizes that before Bitcoin can hit the downside targets, it needs to “chew through the stacked bids on Binance.” This means that many buy orders must be fulfilled before the price can move downwards to more ideal levels.
While the market may seem bullish, CrediBULL Crypto advises caution. The analyst believes that a break of 28k would confirm a bullish trend, but until then, it’s wise to tread carefully, especially around the 27k resistance level. Investors can navigate this volatile landscape more effectively with a keen eye on market indicators and depth.
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