I like chart analysis, but not in the case of Bitcoin because it's a very bullish asset across all timeframes. When I first learned about Bitcoin, I used it for trading, buying or selling within a maximum period of one week. Time has taught me that selling Bitcoin always ends badly. That's why when I see short positions of millions now, I feel like crying at the risk those investors are taking. The loss can be total and absolute, leaving you out of the market.
Screenshot.
But today I wanted to analyze the chart from the last month, which is when it reached its peak, and we can see in the image above that it's still falling. But I dare say that the $100,000 mark isn't in danger. In recent days, it seemed to be finding a bottom at $110,000 before breaking out and surpassing its highs again before the end of the year. Now that trend line has been broken, and it seems it will have to find that bottom lower. Perhaps at 105K.
My outlook remains bullish in the short term, but if it falls below 100K, the downward trend could reach 80K, which would be an excellent opportunity to reinvest in Bitcoin. Perhaps the whales, or rather the funds, are waiting to take those Bitcoins from the small investors who have been holding on for years with diamond hands.
But this is just speculation on my part, so don't take it too seriously. Nobody can see the future.
Disclaimer.
This is not a purchase recommendation. I am not a regulated financial analyst. Under no circumstances should this information be construed as a recommendation to buy, sell, or hold a position.
You should be aware of the risks involved in investing and conduct your due research.
The information described here may not be accurate or may change at any time, so you should always check it.