A closely followed crypto analyst is laying out where he thinks the critical support levels are for Bitcoin (BTC), Ethereum (ETH) and Solana (SOL) as the digital asset markets correct.
In the latest Technical Roundup weekly newsletter, the pseudonymous analyst known as Cred says that a bullish structure remains intact for Bitcoin in the long-term time frame.
He points to the $56,000 to $58,000 range as a crucial support that if broken, would likely lead to a dip to the $50,000 level.
“If the shallow pullback isn’t enough and the market loses support at $56,000-$58,000, it would be rough in the short-term but potentially constructive in the medium-term.
In that case, one could wait for a reclaim of $56,000-$58,000 for a high probability continuation setup towards new highs, or bet on bullish weekly market structure remaining intact via a higher low around the $50,000 handle.
In any case, if the breakout doesn’t stick, it would not be a death sentence.”
Looking at Ethereum, Cred says it makes sense to remain bullish on ETH now that it has tested the $4,000 level three times. According to the analyst, ETH must withstand a market correction to $3,000 in order to maintain bullishness.
“Put simply, if the market pulls back, multi-timeframe support in the low-mid $3,000s must hold. If it doesn’t, that would mean losing round-number support and would result in a weekly lower low, signifying a bearish shift in market structure.”
As for smart contract platform Solana, Cred says that SOL appears to be shifting from a sideways period into an uptrend, evidenced by a weekly close above the $174 level. While still cautious about the altcoin market, the analyst is expecting price discovery for SOL if its recent breakout doesn’t fail.
“We’re still not sold on altcoins generally (outside of outliers) given the majors are at massive inflection points, but if there are going to be outliers that are to some extent immune or at least outperform during choppier periods, Solana is a prime candidate.
If this breakout sticks, that would mark a new all-time high and continued price exploration.”