Dangerous/exciting resistence zone for Bitcoin / USD
The latest days the Bitcoin price has really shown strength. I know that a lot of traders have taken good profits from these movements. Also another group off people will probably show FOMO-action and will jump right in because the price is moving and they don't want to miss possible gains. Thats what FOMO is.
However, watch out by stepping in now and take a sudden long position because of FOMO. Just have patience for the right confirmations. I say this because the price is hitting a crucial resistence-zone. When you take it a little further in the chart. Around january 2021 you can see the yellow-circled zone where the price bounced off this resistence-line (the same where the price is right now!), resulted in a drop of almost 27% to the 28900 prive-level. This price action was created in a bull-market.
Around june 2021 the same thing happened. See the yellow-circled area in the chart. The price action was created in a bear market. Which is quite similar to the situation where we are in right now, where the price came down all the way from 68000.
The orange-cirled area are showing no real heavy pull-backs though. So there could be a small chance that we will see bullish momentum, but for now.... i doubt it. Corrections are part of the game. Especialy when the prices hits like the last 2/3 days.
In my opinion we should wait to get a retest of the 39000/40000 area before jumping in again. And search for possible long around there. If this level will not hold, we probably have to retain the 37000 level. And when this level doesn't hold I assume we will get to the 28900 prive-level and search for longs there.
I just want to remind people .....DO NOT step in because of FOMO. Zoom out, and make the right deciscions. Always use a stop loss.
However, watch out by stepping in now and take a sudden long position because of FOMO. Just have patience for the right confirmations. I say this because the price is hitting a crucial resistence-zone. When you take it a little further in the chart. Around january 2021 you can see the yellow-circled zone where the price bounced off this resistence-line (the same where the price is right now!), resulted in a drop of almost 27% to the 28900 prive-level. This price action was created in a bull-market.
Around june 2021 the same thing happened. See the yellow-circled area in the chart. The price action was created in a bear market. Which is quite similar to the situation where we are in right now, where the price came down all the way from 68000.
The orange-cirled area are showing no real heavy pull-backs though. So there could be a small chance that we will see bullish momentum, but for now.... i doubt it. Corrections are part of the game. Especialy when the prices hits like the last 2/3 days.
In my opinion we should wait to get a retest of the 39000/40000 area before jumping in again. And search for possible long around there. If this level will not hold, we probably have to retain the 37000 level. And when this level doesn't hold I assume we will get to the 28900 prive-level and search for longs there.
I just want to remind people .....DO NOT step in because of FOMO. Zoom out, and make the right deciscions. Always use a stop loss.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.