Bitcoin Bears Are Facing 'Last Stand': Here's What Technical Analysts Are Saying

Veteran technical analyst CryptoCred sees a potential shift to a bullish market structure for Bitcoin BTC/USD, suggesting the apex crypto is at a critical juncture.

What Happened: CryptoCred took to his X account to emphasize the importance of using line charts for market structure analysis, noting that they “tend to be clearer as they only show the closes.”

According to his analysis, Bitcoin has been forming lower highs on the weekly timeframe, indicating a bearish trend.

However, the analyst pointed out that the current price level represents “the bears’ last stand,” describing it as the “last reasonable area where a lower high could form if they’re right + close proximity to invalidation.”

This suggests that the market is at a pivotal point where the direction could shift significantly.

Also Read: Bitcoin’s Correction Ends, But It Has To Break This Target To Surge To $70K: 10x Research

CryptoCred highlighted that a weekly close above $64,000, “ideally an impulsive one, would suggest a bullish break in market structure (first one in a while).” Such a move would have several implications for his trading system, including setting a higher timeframe directional bias towards bullish sentiment.

The analyst outlined three potential trading strategies in the event of a bullish breakout:

1. Holding lower timeframe long positions for longer durations with wider targets.
2. Entering positions at the weekly close if a strong signal appears.
3. Looking for medium timeframe pullback entries to establish positions at higher lows.

CryptoCred cautioned that while the market is currently at local resistance within a bearish weekly structure, a failure by bears to maintain control could have significant technical implications. He advised traders to have a plan ready for either scenario.

Crypto chart analyst Ali Martinez noted Bitcoin's critical level, testing the 200-day SMA, to confirm the bull run. He pointed out that when Bitcoin failed to reclaim the support in the past, it corrected significantly.

#Bitcoin is once again testing the 200-day SMA, a critical level for confirming the bull run.

Historically, failures to reclaim this support, as seen in 2020, 2018, and 2014, led to significant corrections. Watch closely—rejection here could signal trouble for $BTC! pic.twitter.com/WWJgSHSvCd

— Ali (@ali_charts) September 20, 2024

What’s Next: The influence of Bitcoin as an institutional asset class is expected to be thoroughly explored at Benzinga’s upcoming Future of Digital Assets event on Nov. 19.

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