Hello dear traders,
Hope you're all doing fine. After yesterday's BTC plunge, many bears have started to crawl out of their caves, but I think being a bear right now will cost you everything. I have my own reasons and I will explain them here.
First, I would like to discuss the critical price levels BTC has to face. As many of you might be aware, a critical support area lies between 29K and 33K, which bears tried to pierce through decisively and failed. I personally believe BTC will never reach those levels again unless something extraordinary happens. The other area, which is our concern, is the range between 41K and 45K. Last time around, in the previous bull rally, it played the role of a resistance zone that gave birth to a couple of red weekly candles. However, the price managed to break through it and retest it, only to confirm a genuine bullish wave that propelled the price all the way up to 60Ks. Holding this area for BTC is now a crucial task. The manner BTC will hold this area matters of course. In the weeks ahead, we will gain a better perspective. Of course, I can lay out a host of possibilities that might come to pass, such as BTC ranging here for a week or two to flush out panicky sellers, but, after all, they are all projections and I'd rather wait for hard-earned facts. The main and immediate resistance zone price has to contend with is the region between 49K and 53K. 20D SMA of my Bollinger bands, EMA30, which is nestled in the support zone (the green rectangle), and MA30 JUST above the support zone are all acting as clusters of support. A weekly close above MA30 (the blue one) will spell bullish momentum to me.
In the meantime, we can witness that the price is riding a descending channel, which is a bullish sign. The next bullish wave, IMO, will catapult the price out of this channel. Also, in the 4D chart, MA50 is acting as a support factor for now (the picture is annexed in the comments section).
My projections regarding MACD and RSI are clearly stated on the chart; however, I have to repeat that we have to wait for facts in the coming days and weeks.
Thank you for your time and support.
Hope you're all doing fine. After yesterday's BTC plunge, many bears have started to crawl out of their caves, but I think being a bear right now will cost you everything. I have my own reasons and I will explain them here.
First, I would like to discuss the critical price levels BTC has to face. As many of you might be aware, a critical support area lies between 29K and 33K, which bears tried to pierce through decisively and failed. I personally believe BTC will never reach those levels again unless something extraordinary happens. The other area, which is our concern, is the range between 41K and 45K. Last time around, in the previous bull rally, it played the role of a resistance zone that gave birth to a couple of red weekly candles. However, the price managed to break through it and retest it, only to confirm a genuine bullish wave that propelled the price all the way up to 60Ks. Holding this area for BTC is now a crucial task. The manner BTC will hold this area matters of course. In the weeks ahead, we will gain a better perspective. Of course, I can lay out a host of possibilities that might come to pass, such as BTC ranging here for a week or two to flush out panicky sellers, but, after all, they are all projections and I'd rather wait for hard-earned facts. The main and immediate resistance zone price has to contend with is the region between 49K and 53K. 20D SMA of my Bollinger bands, EMA30, which is nestled in the support zone (the green rectangle), and MA30 JUST above the support zone are all acting as clusters of support. A weekly close above MA30 (the blue one) will spell bullish momentum to me.
In the meantime, we can witness that the price is riding a descending channel, which is a bullish sign. The next bullish wave, IMO, will catapult the price out of this channel. Also, in the 4D chart, MA50 is acting as a support factor for now (the picture is annexed in the comments section).
My projections regarding MACD and RSI are clearly stated on the chart; however, I have to repeat that we have to wait for facts in the coming days and weeks.
Thank you for your time and support.
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