Bitcoin (BTC) and the entire crypto market stood strong despite the historic crash of some top traditional banks in the United States — Silvergate and Silicon Valley Bank (SVB) — over the last weekend.
Initially, the crypto market felt the impact of the collapse of both crypto-friendly banks as BTC sank to $19,500 on Friday in one long red candle.
However, the largest crypto by market capitalization staged a sharp comeback following a stunt pulled by Binance CEO Changpeng Zhao. Per an update, Binance converted $1B of the Industry Recovery Fund to BTC, ETH, and BNB.
This bullish move and many other factors saw Bitcoin price skyrocketing over 25% in a few days, hitting $26,300 on Tuesday.
Accordingly, a well-known crypto analyst pseudonymously known as CredibleCrypto noted that the latest aggressive rally in BTC price may likely be the start of a major multi-month rally.
$40k Resistance In Sight
While sharing his bullish outlook on the leading crypto asset, the analyst noted that it is likely that BTC would pull back to $22,000 and consolidate before a massive leg up to the $40k resistance area.
Here’s what CredibleCrypto said in a Twitter video:
“We could potentially take out these highs [$25,600] and then come back down. This area right here [$22,000] is now going to be a significant area of support… So it’s certainly possible that we take these highs and come down here and consolidate a little bit longer, maybe chop around here and then continue up for a more gradual increase and then we simply rocket off of this level.
Meanwhile, he noted that if BTC can stay solid above $25k then the present upward momentum could continue to be in motion.
He said, “If we manage to break this high [$25,000] and consolidate above this region, then we could simply be consolidating before the next big leg up.”
Additionally, CredibleCrypto explained why it is unlikely but not impossible for BTC to go down to the $18k region. According to him, the latest BTC rally is highly aggressive and strong to fall back to such a low zone in the short term.
“I cannot rule out another retest of these levels [$18,000]. Again, it’s logical to restest these levels. I cannot rule that out. But with this strength and [the] aggression of this move to the upside, it just introduces other scenarios that make that type of a retest a little less likely,” he added.
New market UPDATE! $BTC rallies over 25% off of our major buy zone in a single bullish candle, breaking our local resistance and consolidating just below local highs. Watch below to see why this might just be the START of a major, multi-month rally. pic.twitter.com/NjRlOuaYHa
— CrediBULL Crypto (@CredibleCrypto) March 14, 2023