Bitcoin on the Edge: Trading in a Tight Range, Will it Break Out
At the time of writing, Bitcoin is still within its current range, bounded by the monthly resistance level of $23,301 and the daily support level of $22,393. We are below the Value area Low (VAL) of the current range and testing the daily support level.
For the bearish scenario: we have liquidity and stop losses along with the CME gap around the $20,000 level. It’s a significant psychological level and hard to break, but if we break through this level, we can expect a drop around $18,170-$18,540 which is a 0.66 Fibonacci level from overall lows to the current high. This level previously acted as a strong resistance.
For the bullish scenario: if the price manages to break above the $23,301 monthly level, then we can witness another $1,000 rise upwards around the $24,297 weekly level, or if the bullish momentum is strong enough, then we can expect the price to move straight to $25,211 for the swing failure pattern (SFP) or Failed auction (FA) of the last high before a significant sell-off.
Conclusion: As of now, we are in the mini range and will trade the range until it breaks. With apparent resistance and support levels, traders can identify entry and exit points to capitalize on the current market conditions.
For the bearish scenario: we have liquidity and stop losses along with the CME gap around the $20,000 level. It’s a significant psychological level and hard to break, but if we break through this level, we can expect a drop around $18,170-$18,540 which is a 0.66 Fibonacci level from overall lows to the current high. This level previously acted as a strong resistance.
For the bullish scenario: if the price manages to break above the $23,301 monthly level, then we can witness another $1,000 rise upwards around the $24,297 weekly level, or if the bullish momentum is strong enough, then we can expect the price to move straight to $25,211 for the swing failure pattern (SFP) or Failed auction (FA) of the last high before a significant sell-off.
Conclusion: As of now, we are in the mini range and will trade the range until it breaks. With apparent resistance and support levels, traders can identify entry and exit points to capitalize on the current market conditions.