#BTC☀ Market interpretation: There is a slight divergence in the daily line, and the key price breakthrough point is still suppressed by the daily line. We need to wait to confirm the breakthrough!
The current market situation is basically in line with our judgment yesterday. The bullish sentiment continued from the end of the U.S. stock market to the Asian morning. The price directly broke through the dense resistance area in the short term, causing the daily moving average to gradually move up, but there was a slight divergence.
Let’s look at the resistance first:
The short-term resistance can be directly seen at the previous high of 65,000 on the hourly line. The resistance basically represents the range where selling pressure occurs. Pay attention to the further breakthrough and turnover of this position.
Regarding medium-term resistance, according to the previous high of the daily line, after BTC broke through the historical high, there were two short tops, and the positions were decreasing, so we need to pay attention to whether it can break through the previous high this time.
If the price continues to rise and bulls break out intensively, we should pay attention to the breakthrough of the 69,000 resistance within a week. If it fluctuates and rises, and the bulls are maintained for 2 weeks or even longer, we should pay attention to the 68,500 position.
Whether or not the above position can be broken through determines whether there is motivation to test the previous daily high. If the previous daily high is broken through, the overall trend will be reversed.
Look at the support:
After the BTC price successfully breaks through the dense resistance range, this resistance area will form support in the short term, with a focus on the situation around 63,200.
Overall Assessment:
Although the BTC price has made an effective breakthrough, liquidity is low during the weekend. To confirm the continuation of the bull market, we still have to wait for the trend from the early hours of the weekend to the opening of the U.S. stock market on Monday night.
Similarly, although the price has broken through, the current price breakthrough is still blocked by the upper line of the daily Bollinger Band, indicating that the short-term breakthrough momentum is insufficient and the daily range suppression has not been achieved. In addition, the lower line of the daily Bollinger Band moved down during the upward process of BTC prices, and the middle and upper lines of the daily Bollinger Bands continued to move up, with a slight divergence. This situation also means that the bulls lack momentum and there is a risk of a sharp decline, which needs to be noted.
There are only two ways to avoid this risk. The first is that the BTC price falls back, the bulls weaken, and the daily Bollinger Bands fluctuate on the upper track to accumulate bullish power. The second is that the bulls continue to explode, allowing the price to break free from the daily suppression, and the deviation from the moving average will be forced to pull back.
The rise in BTC prices is an optimistic phase for the crypto market, but we still need to wait cautiously for the confirmation of the bulls. At the same time, we should also pay attention to the test of the key positions above. I am not necessarily bearish, but I am effectively reminding you of the risk points. Please pay attention to the distinction.
$BTC