The analysis of past events doesn't provide a definite path for the future. Still, it represents useful guidance of what to expect from the coming price action and how to take advantage of the unfolding scenario.
Bitcoin's price approaching new all-time highs seems to resemble closely how the price reacted, nearing the $12,000 area between August and September 2020.
The market perceived that area as a key resistance as it marked the local top in 2019. Once broken, the price shot up straight to $20,000. That didn't come without uncertainty. It took almost three months for buyers to overcome the wealth of selling pressure from the supply side. We can expect the same to happen in the coming weeks, as current levels are even more crucial. The chart above shows the to-watch levels.
The more the price will slide, the better will be the long-term buy opportunity. Ideally, the perfect buy zone would be between $14,000 and $16,000. Unfortunately, the market not always gives you want, so it would be more appropriate to split the entries into sequential targets, following the lines drawn in the chart. Set up your plan and act accordingly.
The short-term price moves may look scary, but you should find confidence in looking at the bigger picture.
Bitcoin's price approaching new all-time highs seems to resemble closely how the price reacted, nearing the $12,000 area between August and September 2020.
The market perceived that area as a key resistance as it marked the local top in 2019. Once broken, the price shot up straight to $20,000. That didn't come without uncertainty. It took almost three months for buyers to overcome the wealth of selling pressure from the supply side. We can expect the same to happen in the coming weeks, as current levels are even more crucial. The chart above shows the to-watch levels.
The more the price will slide, the better will be the long-term buy opportunity. Ideally, the perfect buy zone would be between $14,000 and $16,000. Unfortunately, the market not always gives you want, so it would be more appropriate to split the entries into sequential targets, following the lines drawn in the chart. Set up your plan and act accordingly.
The short-term price moves may look scary, but you should find confidence in looking at the bigger picture.