A well-known cryptocurrency analyst and trader remains optimistic about Bitcoin’s prospects despite its recent drop below the psychological barrier of $60,000.

Referred to as Credible Crypto by his large following of 402,400 on the social media platform X, the analyst asserts that Bitcoin’s bullish market structure remains robust over the long term. He suggests that although there has been a retracement, Bitcoin could experience significant upward movements following the current correction. However, Credible Crypto cautions that it may take some time for Bitcoin to initiate a new uptrend.

“In my opinion, spot buyers need not be overly concerned at this point,” he reassures. “As I’ve mentioned previously, on higher time frames, there’s potential for a considerable decline without compromising the bullish framework. What follows this correction could mark our next significant advance towards $100,000. Nevertheless, if you’re considering buying during this decline, you must be prepared for a period of holding underwater.”

At the time of writing, Bitcoin is trading at $56,319, suggesting an upside potential of nearly 80% if the analyst’s target is achieved.

However, Credible Crypto warns of the possibility of the current correction gaining momentum, especially with increasing levels of open interest. Open interest, which refers to the total number of unsettled contracts, indicates that traders are leveraging their positions in Bitcoin.

The analyst highlights that heightened open interest combined with Bitcoin holders selling their coins in the spot market could prolong a downward trend for BTC.

“I believe a short squeeze is inevitable,” he observes. “Yet, as long as new long positions continue accumulating during the descent ahead of a spot-driven sell-off, the situation may deteriorate before improving.”

Regarding altcoins, Credible Crypto anticipates potential impacts if Bitcoin continues to decline. “Altcoins are likely to suffer if Bitcoin’s decline persists,” he comments. “Some altcoins are either in the midst of or nearing significant distribution phases, which could lead to prolonged declines. Others, which have seen minimal gains from their lows, may also be vulnerable. However, these may be less concerning as they have less gains to retrace.”

The analyst concludes with a reminder to stay informed by subscribing to updates and practicing cautious monitoring of price action.

Source: Credible Crypto/X

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