A cryptocurrency strategist believes that Bitcoin (BTC) is setting up bulls and believes that the $20,000 area could be the bottom of a bear market.
The analyst nicknamed Pentoshi warned his 600,100 Twitter followers that Bitcoin has hit support around $20,000 three times in about a month.
In technical analysis, bouncing off a support level multiple times suggests that the breakdown is occurring when demand at that particular price area dries up.
Pentoshi also said that retail traders likely bought Bitcoin near the peak of BTC’s recent rally, suggesting more downside risk as latecomers prepare to cut their losses.
At the time of writing, BTC is at $21,400 while the 200-week moving average is hovering above $23,000.
As for Ethereum (ETH), the cryptocurrency analyst warned that the leading Smart contract platform has just hit a critical resistance level, indicating that the downtrend remains intact.
At the time of writing, ETH is trading at $1,642, below Pentoshi’s marked resistance level of $2,000.