BTCUSD Bitcoin : Rise from the ashes or fade away? Why and how
Let's shut down negative thinking and look at facts, fundamental and technical facts, which is what makes analysis.
Fundamental -
Bitcoin is an alternative to the stock market, USD, bonds and Gold.
What advantage does Bitcoin have over the others?
1) Limited supply, endless demand
2) Payment solution to beat aged payment services in speed and bureaucracy
3) Security of funds is absolute due to Blockchain
4) Bitcoin is a natural hedge to inflation , which may be long-term with what's currently happening.
5) Diversification king. Diversified portfolios must include the coin.
And more.
Now let's look technically.
1) Convergence of 3 critical support trend-lines long-term around 25,000.
*March 2020 - Today
*Jan 2021 - Today
*September 2021 - Today (Together with resistance forms a 'falling wedge' pattern which is bullish with consolidating highs and lows)
2) RSI 14 shows the most oversold daily condition since Jan 2022 , when BTC rallied from 30,000 to 47,000 - Before that, it was when March 2020 rally started and took BTC to almost 70k.
BTC needs to go back above 30,000 to confirm short-term up trend.
If Bitcoin breaks below the convergence of the support trend-lines, it could spike down to 20,000 and then 5,000-26,000 would be the next resistance to pass on the way back to up-trend.
The odds of that are significantly lower considering the fundamental advantages and the oversold technicals.
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Fundamental -
Bitcoin is an alternative to the stock market, USD, bonds and Gold.
What advantage does Bitcoin have over the others?
1) Limited supply, endless demand
2) Payment solution to beat aged payment services in speed and bureaucracy
3) Security of funds is absolute due to Blockchain
4) Bitcoin is a natural hedge to inflation , which may be long-term with what's currently happening.
5) Diversification king. Diversified portfolios must include the coin.
And more.
Now let's look technically.
1) Convergence of 3 critical support trend-lines long-term around 25,000.
*March 2020 - Today
*Jan 2021 - Today
*September 2021 - Today (Together with resistance forms a 'falling wedge' pattern which is bullish with consolidating highs and lows)
2) RSI 14 shows the most oversold daily condition since Jan 2022 , when BTC rallied from 30,000 to 47,000 - Before that, it was when March 2020 rally started and took BTC to almost 70k.
BTC needs to go back above 30,000 to confirm short-term up trend.
If Bitcoin breaks below the convergence of the support trend-lines, it could spike down to 20,000 and then 5,000-26,000 would be the next resistance to pass on the way back to up-trend.
The odds of that are significantly lower considering the fundamental advantages and the oversold technicals.
------------------------------------------------------------------------------------------------------------------------------------------
Thank you so much for reading! If you found my idea helpful - Please like and follow , it would mean a lot to me :)
Please comment with any questions you may have - I'm here to help.
-------------------------------------------------------------------------------------------------------------------------------------------
Trade active:
25,000 , support trend-line of March 2020 - Today is confirmed!
Which means that a break above 35,000 is what's needed for bull trend confirmation, a close above triangle consolidation.
Let's see!
Which means that a break above 35,000 is what's needed for bull trend confirmation, a close above triangle consolidation.
Let's see!
Trade active:
28,500 is important support, if broken below with a daily close may retest 25,000.
