Hello everyone,
How are you all? I hope everyone is fine and doing great in their life.
I am back with another Bitcoin market analysis after checking the price two days ago. In today’s blog, we are going to analyze the same chart once again because the market has started to recover, and we need to see if the levels that we created earlier are working well for us.
In the screenshot below, you can see that we are currently trading above the orange trend line, which was a major support level for Bitcoin. The most important support level was the green line, but it was not tested because the orange line was respected and maintained. Now we are trading above it.
The important thing is that the market should consolidate at this level for at least a few days. A sudden pump is not a sign of recovery, and it does not confirm that the bottom is already in. So we need to see if the daily closing and the consolidation will stay around this price so that the next target, which is around 88490 USD, can be broken.
In the screenshot below, you can see that I have drawn a new blue trend line. This blue trend line will act as the resistance for Bitcoin, and it is close to 88500 USD. So we have to consolidate near this price and then break it. After that, we will test the resistance at 93400 to 93500 USD, because that is the next important resistance area.
When these two resistance levels are broken, then we can think about a positive market movement because that will confirm that the bottom is already in.
But right now, we are still trading below the blue trend line, so there is still a high chance that we might fall back to the orange support line. Let us hope that this will not happen and that we will consolidate near the blue resistance line and then break it to move further upward.
Lastly, in the screenshot below, we have drawn all the support and resistance lines once again. After the pink resistance is broken, there is also a dark blue resistance line at 106000 USD. But we are not going to aim for that directly because there are multiple resistance levels in between.
There are resistance levels at 97000 USD, then 99900 USD, then 103000 USD, and then the range between 105000 and 106000 USD. This is how the price should move. It is not going to happen in a single day, because that would prove that the move is only a fake breakout.
Moving slowly over several days after consolidation will confirm a strong rebound, and after that, we can even create a new all time high for Bitcoin.
Let us wait and see what the market offers us in the coming days. If you have something to share about your analysis or thoughts about this one, feel free to comment below.
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