Relevant levels on Bitcoin and possible movements.
Today, we will take a look at BTCUSD.
On NOV 2021, the price failed to continue the bullish trend beyond the ATH of April 2021, and from there, we have been observing bearish pressure until now. Currently, we are at a 42% decline from the previous top. What can we expect from here?
As always, I have defined two scenarios for the short term based on the key level we are at right now and the closest support/resistance we have.
Currently, the price is inside a descending channel which works as a dynamic resistance level. At the same time, the price has reached a key level that has been tested several times in the past. So from here, we can expect a bearish movement towards the next support zone at 29.600 that would represent, in my view, a major target for the bearish movement; In that case, I would be interested in start thinking about new bullish opportunities IF IF IF the price breaks the descending channel and makes clear formations that I can use to develop setups (assuming the price reaches 30K).
The logic here is pretty simple: 1) The price reaches a major level (same degree as the resistance zone where the price started the bearish movement) 2) The price breaks the short term bearish structure (which is defining the movement) 3) I wait for corrections and then I trade.
Now let's take a look at the bullish scenario. (which I'm not interested in trading right now). The price breaks the descending channel, makes some type of correction or not, and then we have a target at 52300.
The main purpose of this analysis is to define key levels for different types of traders or styles. And then explain how I'm thinking the current situation (A movement towards the next support zone represents for me a really good opportunity to think about swing setups from that level, that's why I'm waiting right now)
Thanks for reading; feel free to share your view in the comments.
On NOV 2021, the price failed to continue the bullish trend beyond the ATH of April 2021, and from there, we have been observing bearish pressure until now. Currently, we are at a 42% decline from the previous top. What can we expect from here?
As always, I have defined two scenarios for the short term based on the key level we are at right now and the closest support/resistance we have.
Currently, the price is inside a descending channel which works as a dynamic resistance level. At the same time, the price has reached a key level that has been tested several times in the past. So from here, we can expect a bearish movement towards the next support zone at 29.600 that would represent, in my view, a major target for the bearish movement; In that case, I would be interested in start thinking about new bullish opportunities IF IF IF the price breaks the descending channel and makes clear formations that I can use to develop setups (assuming the price reaches 30K).
The logic here is pretty simple: 1) The price reaches a major level (same degree as the resistance zone where the price started the bearish movement) 2) The price breaks the short term bearish structure (which is defining the movement) 3) I wait for corrections and then I trade.
Now let's take a look at the bullish scenario. (which I'm not interested in trading right now). The price breaks the descending channel, makes some type of correction or not, and then we have a target at 52300.
The main purpose of this analysis is to define key levels for different types of traders or styles. And then explain how I'm thinking the current situation (A movement towards the next support zone represents for me a really good opportunity to think about swing setups from that level, that's why I'm waiting right now)
Thanks for reading; feel free to share your view in the comments.
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