Crypto analyst Sherlock has revealed how a Bitcoin price crash to $63,000 could play out. He highlighted key levels to watch and zones where traders should look to short BTC in preparation for this potential downtrend.
Key Levels To Watch With Bitcoin Price Crash To $63,000 On The Cards
In an X post, Sherlock told traders to look for a short setup around $80,000 if the Bitcoin price only takes the equal highs around this range and then gets rejected. However, he added that if BTC breaks above April’s high at $79,485 before May 5, traders shouldn’t short immediately; instead, they should wait for breakout buyers to chase the pump.
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The analyst further highlighted the $84,000 to $85,000 range as the ideal zone to short if the Bitcoin price reclaims the April high, as he expects a short squeeze to happen around that range. This suggests that BTC could still rally to around $85,000 before a decline, since the leading crypto has successfully broken above the April high.
Sherlock’s accompanying chart showed that a Bitcoin price crash to around $63,000 could happen within a month after BTC taps the $85,000 level. The analyst also explained why he is confident the leading crypto could still crash despite its current bullish momentum. He noted that since 2020, BTC has always recorded a red monthly candle in May whenever the price failed to break above April’s high in the first five days of May.
However, this trend broke last year when the Bitcoin price surpassed April’s high on May 1 and then recorded another 16.9% rally to a local high of $111,980 by May 22. This is notably why BTC could still rally to around $85,000 before the crash occurs.
BTC Looks Ready For More Upside
Crypto analyst Michaël van de Poppe said in an X post that the Bitcoin price looks ready for more upside, with the potential to rally to as high as $93,000. He noted that BTC broke above $79,000, indicating a clearly upward trend, although intraday corrections are possible. The analyst alluded to flows into Bitcoin ETFs, with these funds recording over $1.6 billion in inflows since the start of this month.
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Van de Poppe also mentioned that there is a lot of interest in BTC at the moment, which is why he believes that the rotation from gold to Bitcoin is definitely taking place. He added that the current uptrend is unlikely to stall 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 at around $81,200, up in the last 24 hours, according to data from CoinMarketCap.
Featured image from Pixabay, chart from Tradingview.com