Bitcoin price chart looks pretty good again. Key levels on higher timeframes have been overcome, moods are improving and people in the crypto market seem to be starting to forget about all the bad things that are happening in the world.
Evergrande. “Special operation”. Tightening Fed policy. Regulation. Legislative initiatives. COVID.
All the narratives (some quite objective) that we constantly heard about while the price was going down magically evaporated as the price went up. Although nothing has changed, except for the price chart.
It’s funny, but in general, nothing surprising. That is why I prefer to always look at the chart first.
Do you want some good news? The greed hasn’t even set in yet. Of course, the fear and greed index is just one small tool, but it can be used to confirm your understanding of where the market is. And he’s neutral. Completely neutral.
The market has been in a zone of fear for ages, and now traders are finally coming out of their stupor. More importantly, the market broke through the key levels without the index moving into the greed zone. This suggests that there is still a lot of room for growth if FOMO kicks in.
But let’s now turn to the charts.
The weekly chart recovered above two key levels, turning them into support — at least for now. What are these levels? – weekly moving average (blue curve) and area ~$,5k, which both me and the guys from the Technical Roundup have written so much about in recent months. This “should” signal that bitcoin has exited the accumulation zone and completed the bottoming process. However, bitcoin can defy the laws of technical analysis and logic, so you can’t be sure of anything. It is indeed important that these restored support levels be maintained in the coming days and weeks.
When the price convincingly broke through the resistance ~$,5 thousand and rose to $ thousand, the entire community of traders experienced the same idea: retest this area as support.
Price broke out of a beautiful ascending triangle with successive higher lows pushing price towards resistance.
So far, the idea that I shared with you on Friday is working out perfectly, but, of course, it’s too early to celebrate. If this level holds as support, then I expect a move to $04–45 thousand
Let me remind you that I not share signals with you neither in this nor in any other section. I share setups and charts that I observe myself, and tell me under what criteria I personally would consider buying.
Never blindly buy anything just because you saw it in someone else post or twitter. Before entering into a trade, you must have a plan. These are just ideas, and almost always they are scenarios like “if __ then __”: if certain conditions are met, then I would consider buying. declining – a rare situation when “alts” show outstripping growth, while bitcoin is rising, declining or in a sideways trend. It rarely lasts long, so you can try to take advantage of the situation and have fun.
The first target after the breakout of the symmetrical triangle is $3420 – achieved. Great.
So far, this looks like a conversion of former resistance into support, which means … further up. There are no guarantees, but so far the setup looks very attractive. The closest target level while maintaining the specified support is $1600 .
I already wrote about this setup in more detail at the end of March.
Expect movement to the nearest resistance ~$166 (revised this level).
If this level is taken, then maybe even higher, but so far there is not the slightest reason to be greedy and swing too high.
As you can see, by this day we have clean break of sloping resistance and retest it as support. So simple.
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