Is Bitcoin Ready For $60,000?
2023-10-23 09:25
CRYPTO MECHANIC
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#bitcoin provided a really nice run in the past week. Up from $27k to over $30k Now the question is, is this enough for a move to $40,000 or $60k ?
Lets dive into charts and see what we can get from the #BTC in the next few weeks.
A look into the past
if you look on the left (the area i circled) on the chart you can notice how $30,000-$32000 area held the price for a year. That means this area was a strong demand/support from 2021-2022 may.
Now looking at the present. it's very basic rule of technical analysis that if an area was a support and it broke down it can act as resistance when price come back up to the same area.
So keeping that in mind this whole $30k to $32k area is a strong resistance we have on chart and probably the last area for bears to defend.
What should you do ?
Long story short, i would not recommend anyone to buy a strong area of resistance where you never know if the price will breakout or it will get a rejection back down. So it's a 50/50 area.
Personally i don't like to play at a zone where the chances are 50/50
if you're buying #BTC i do not think it's a good area to chase.
Where should i buy?
Well it's really a simple trade plan , You need to wait for the price to break out of this strong area, once it does and holds up there for some time. that will be strong indication that the bitcoin is going much higher.
Can i short ?
Well as i said it's a 50/50 area so i wouldn't suggest a short because if it starts to move up can squeeze you so bad and will not give you a chance to exit. so you need to go with a proper plan.
If price squeeze up from here and takes out the july high of $31800 ish. Wait for the price to make it a failed breakout.
if it drops back under $31k and holds that will be a sign that it was a failed breakout and market just trapped the longs. This is where you step in as a bear and short.
This was it for Bitcoin update, i hope you liked it. Leave a comment if you liked. #BTC #xrp #crypto2023
