Bitcoin's Dual Scenario Analysis πŸ“Š

BINANCE:BTCUSDT   Bitcoin / TetherUS
Bitcoin (BTC) currently presents two possible scenarios, each with unique potential outcomes. Here, we'll explore both without assigning specific probabilities to avoid bias.

Scenario A: The Bearish Outlook πŸ“‰
In this scenario, Bitcoin is forming lower highs and lows within a small cycle. A descending channel could also be drawn if desired. For this scenario to activate, the price needs to consolidate below the $60,000 mark. Should this occur, a downward movement towards the $48,000 area may begin.

Key points to consider:

A knot at the $55,000 level on the 4-hour timeframe could potentially reduce downward momentum.
The next critical support lies between $50,000 and $48,000. This range has acted as both a past resistance and monthly support, supported by Fibonacci retracement levels of 61.8% and 70.7% PRZ.
I am not placing a buy order yet, as I need to be sure that this zone can indeed support the price and provide upward momentum. If this area holds and the market momentum reverses, I might adjust my analysis or wait for $65,000 before taking further action.
Scenario B: The Bullish Outlook πŸ“ˆ
Following a break above $65,000, Bitcoin has formed its first higher high on the daily timeframe after three months. This is an early sign of returning bullish momentum. Risk-takers, particularly if Bitcoin's dominance is also rising, might consider entering at this point with a stop loss at $55,000.

For a safer entry:

Wait for a break above $72,000. The expected range upon breaking this level could be between $85,000 and $90,000. However, discussing these levels might be premature now.
Important Consideration 🚨
Remember, no one can predict financial markets with certainty; these are merely scenarios. As traders, we must learn to live in the moment and react optimally to unfolding events.

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πŸ”– Categories: Trend Analysis, Support and Resistance, Supply and Demand

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