Bitcoin has been on an impressive bullish streak for the past nine months, maintaining a consistent upward trajectory within a defined range. Extending the historical resistance and support lines only reinforces the strength of this bullish trend.
As of both today and yesterday, Bitcoin has remained steady at the support level. While minor corrections have occurred, they haven't been drastic. Today saw a brief dip below the support line, swiftly followed by a rebound towards it.
So, what's the significance of all this? There are essentially two outcomes: the price can either rise or fall. However, when the support level is tested, the odds favor an upward movement. Statistically, there's a 70% chance of a rebound to the resistance level and a 30% chance of a breakdown below support.
The prudent strategy is to take advantage of the higher probability, which in this scenario means taking a long position on Bitcoin. Nevertheless, it's essential to be vigilant and cut losses if support is breached. When support does give way, the descent tends to be rapid. Conversely, if the upward trend continues, be prepared to capitalize by selling when the price reaches the resistance level. Lock in profits and consider reassessing for a fresh position. Avoid going all in on breaking resistance outright. Remember, market prices oscillate within a defined range delimited by resistance and support. Understanding and exploiting this movement can yield satisfying profits.
Here's another key principle: when unrealized gains bring a smile to your face, it's wise to secure those profits!