For the last 40 days, Bitcoin has moved in a range between 8700$- 10000$ and I believe a big move is about to come next. Below, you will find the full explanation from a TA perspective and what are the possible scenarios . Let's take a look at this chart from 24 Feb and see what happened.
The price of BTC has reached the 10000$ resistance area, then the price was rejected from that zone and it went down breaking below the uptrend line. On the retest of the breakout, you can easily see the RSI and MACD indicators becoming bearish. That was a great opportunity to short BTC and buy it at a lower price. But, that was in the past and after it happened, everyone can predict that move right?
In the next chart below, you will how the price of BTC reacted in the last days when BTC has reached the same resistance level around 10000$.
In the chart above, you can see an identical move for BTC like the one from 24 Feb. The price has reached the 10k zone, then it was rejected and breakout below the uptrend line. We can also see how the price was rejected from the resistance area after we had the retest of the breakout. Again, the RSI and MACD indicators are in the bearish side and we can assume the price will go lower as it already happened in the past.
BTC buy zones for the long term:
- 7110-7915$ ( immediate support from 0.382 and 0.5 fibonacci levels)
- 5229-6228$ ( strong support from 0.618 and 0.786 fibonacci levels)
What you can do next?
- you can wait for another retest of the 10k area and go short with a stop loss accordingly
- you can also wait to buy in those support zones
- you can wait and see if the price will break above the last high and go long ( if the price will move above the last high, we can expect another bullish scenario for BTC.
In my opinion, I believe that the price of BTC will go lower and test those area of support. The chart is telling us a story and it's up to us if we believe that story or not. I hope you will find something useful in this post.
If you have any suggestions, please leave a comment below. I wish you a great time and happy trading.