Make or break zone in the bitcoin price
For the past four weeks, the Bitcoin price has been holding relatively steady in the zone between $30,000 and $40,000. The rally to the current all-time high was characterised by few recovery phases. It was almost impossible to find decent entries after Bitcoin System scam price recoveries for long-term investments. Are there still good entry opportunities in the near future and where will the price go? We would like to explore these questions in today’s technical analysis on a weekly, daily and 4-hourly basis.
Important mark per weekly closing price!
The current and next weekly candle are all about important decisions. If this weekly candle closes at approximately the current price level, a double top may occur from a trader’s perspective. This means that the Bitcoin price would subsequently fall again and not make a new all-time high. Figuratively speaking, at the second top, the bulls have no more power to push the price further up. The bears are simply too strong at this point.
This initial situation makes many traders wary and they will take neither long nor short positions. The Bitcoin price can break out in either direction. Only after one or two confirmation scenarios do traders become active again and trade their positions.
A price correction would result in the weekly key level at around 32,300 dollars becoming interesting first. This price level has also offered a lot of support in recent weeks. For new long positions, the bitcoin price would first have to rise sustainably above the $38,340 mark. After that, one looks for suitable entries.
Is the breakout from the correction phase sustainable? This is probably what many traders are currently asking themselves. However, it is too early to judge this accurately on a daily basis. The weekly chart still looks too uncertain. Since larger time units carry more weight than the lower ones, the daily chart must bow to the weekly.
After a confirmed double bottom early last week, the bitcoin price rose from around $33,000 to over $40,000. However, the bears were waiting there and the price fell back a bit. However, it would be premature to venture definite long or short entries now. There may already be signals from the lower time units. Let’s take a look at the 4-hour chart.
Unfortunately, things do not look rosy for the bulls in the 4-hour chart either. If the trend is broken, the zone around the key levels between 33,000 dollars and 34,000 dollars will be targeted as a renewed support. This zone was also described as an important support zone in our last report! Below this level, the $30,800 mark is crucial for the Bitcoin price.
In lower time units, slight profits can still be generated if the trend is stable. However, everything above the 4-hour chart should be treated with caution. As always, keep an eye on your risk and happy trading!