A closely followed crypto strategist is mapping out potential price paths for Bitcoin’s (BTC) surge to $58,000 amid an uncertain macroeconomic backdrop.
In a new strategy session, pseudonymous analyst Cred says three macro factors are impacting investor sentiment in the crypto markets.
The first factor is the Federal Reserve’s hawkish stance which involves the potential tapering of asset purchases and the raising of interest rates to combat inflation. Cred also mentions the growing tensions between Russia and Ukraine and the energy crisis in Europe.
While Cred says uncertainty is the current narrative, he believes there are two scenarios where Bitcoin can still pull off a strong rally.
Says the crypto analyst on the first bullish script,
“In terms of bullish continuation longs, I would need to see a breakthrough that confluence and those confluent levels of resistance [$43,000 – $47,100] and that would need to happen at least on the weekly timeframe… Strength through resistance and either you get a very shallow pullback I would expect before a push toward the range high [$58,000].
Or a kind of impulsive breakthrough. You get a period of consolidation and then it doesn’t [give] you another pullback and go straight up.”
Even if Bitcoin does not take out its immediate resistance soon, Cred believes that BTC can still ignite a surge provided it establishes a bullish higher low structure.
“From a market structure point of view, yes, the nearest level is the daily $40,000… But if we let that wick a little bit or if we simply employ the weekly timeframe, the deeper pullback candidate for a higher low is the leg to $38,000 before you get at least a retest of resistance, if not a rush into the range high [$58,000].”
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