Crypto analyst Sherlock has revealed how a Bitcoin price crash could reach $63,000. He highlighted the key levels to watch and zones where traders should look to short BTC in preparation for this potential downtrend.
Key levels to watch with a Bitcoin price crash to $63,000 on the cards
In one X messageSherlock told traders to look for a short price around $80,000 if the Bitcoin price only made similar highs around this range and then be rejected. However, he added that if BTC breaks above April’s high of $79,485 before May 5, traders shouldn’t short immediately; instead, they must wait for breakout buyers to chase the pump.
Related reading
The analyst further emphasized that the $84,000 to $85,000 range is the ideal zone for shorting if the Bitcoin price hits the April high as he expects. a short press happen around that range. This suggests that BTC could still rise to around $85,000 before falling, as the leading crypto has successfully broken above its April high.
Sherlock’s accompanying chart showed that a Bitcoin price crash to around $63,000 could occur within a month of BTC reaching the $85,000 level. The analyst also explained why he is confident that the leading crypto can still crash despite the currents bullish momentum. He noted that since 2020, BTC has always recorded a red monthly candle in May when the price failed to rise above the April high in the first five days of May.
However, this trend broke last year when the Bitcoin price surpassed the April high on May 1 and then registered another 16.9% rally to a local high of $111,980 on May 22. This is specifically why BTC could still rise to around $85,000 before the crash happens.
BTC seems poised for more upside potential
Crypto analyst Michaël van de Poppe said in a X message that Bitcoin price seems poised for more upside, with the potential to rise to $93,000. He noted that BTC broke above $79,000, indicating a clear uptrend, although intraday corrections are possible. The analyst alluded to flows in Bitcoin ETFswith these funds registering inflows of more than $1.6 billion since the beginning of this month.
Related reading
Van de Poppe also mentioned that there is currently a lot of interest in BTC and that is why he thinks that the rotation from gold to Bitcoin will certainly take place. He added that the current upward trend is unlikely to stagnate anytime soon, with the current construction. This is why he believes there is room for a rally between $86,000 and $88,000, and most likely between $91,000 and $93,000.
At the time of writing, the Bitcoin price is trading around $81,200, up in the past 24 hours. facts from CoinMarketCap.
Featured image from Pixabay, chart from Tradingview.com