What's Next For BTC? Short Term Target and Beyond...
Hello Traders,
Here is my analysis for Bitcoin over the coming days/week.
This analysis is on the Daily chart, I wanted to show the overall Macro trend to help you better understand why I am still Bearish on Bitcoin.
First let's start with the short term targets.
- As you can see there are 3 local resistance levels in the current range. We already hit the 1st level at $42.2K which is where a lot of people took profits.
- The next level is at $42.8K. This is where I will take profits from my long opened at $39.7K. Most likely BTC will get rejected off this level and will trend back to the $40K region. It's possible that BTC makes it to the 3rd resistance level around $43.2K but it's a much lower probability.
- Then BTC will break $40K and head to the bottom trend line around $37.5K.
- This will either happen quickly in the next several days, or it could take slightly longer with some consolidation in between.
Whats Next?
- I do not believe that BTC will have another size-able rally up before first trending lower.
- On the macro BTC has formed a perfect Bear Flag pattern. This signals further downside continuation.
- Another reason I don't think BTC will rally first is because of the speed of the downtrend from $48K. The fact that BTC sold off much quicker than it rallied up indicates that people were eager to sell which is very bearish. This signals that another bearish move is more probable than a bullish one.
-The next target for BTC imo is around $37.5K
- After $37.5K is hit I would expect a very large bounce I've we've seen the other 2 times this trend line was hit.
- Beyond that I believe the lower trend line will break and the next target would be the low $30k range.
Happy Trading and Best of Luck!
Here is my analysis for Bitcoin over the coming days/week.
This analysis is on the Daily chart, I wanted to show the overall Macro trend to help you better understand why I am still Bearish on Bitcoin.
First let's start with the short term targets.
- As you can see there are 3 local resistance levels in the current range. We already hit the 1st level at $42.2K which is where a lot of people took profits.
- The next level is at $42.8K. This is where I will take profits from my long opened at $39.7K. Most likely BTC will get rejected off this level and will trend back to the $40K region. It's possible that BTC makes it to the 3rd resistance level around $43.2K but it's a much lower probability.
- Then BTC will break $40K and head to the bottom trend line around $37.5K.
- This will either happen quickly in the next several days, or it could take slightly longer with some consolidation in between.
Whats Next?
- I do not believe that BTC will have another size-able rally up before first trending lower.
- On the macro BTC has formed a perfect Bear Flag pattern. This signals further downside continuation.
- Another reason I don't think BTC will rally first is because of the speed of the downtrend from $48K. The fact that BTC sold off much quicker than it rallied up indicates that people were eager to sell which is very bearish. This signals that another bearish move is more probable than a bullish one.
-The next target for BTC imo is around $37.5K
- After $37.5K is hit I would expect a very large bounce I've we've seen the other 2 times this trend line was hit.
- Beyond that I believe the lower trend line will break and the next target would be the low $30k range.
Happy Trading and Best of Luck!