Hello, dear members of LeoFinance!
Today I will comment on the price chart of Bitcoin.
So, last week the price of Bitcoin increased significantly (from $11,300 to $13,300) and, now, it is just consolidating near the psychological level of $13,000 per one digital coin.
And, although, I am really very bullish on BTC in the long run I would just like to outline some key levels that are worth monitoring in the near future.
Let's have a look at the price chart of BTC/USD in the monthly time frame (MN):
As you can see in the price chart, there are two key levels - $10,760 (green line) and $13,880 (red dashed line). So, the first one, or $10,760 is the level of the closing price of the bullish candlestick from June 2019 and the opening price of the bearish candlestick of July 2019. It means it was a key level in the local high of 2019. Back in the summer of 2019 the bears were able to reverse the market from that level.
Luckily, although in September 2020 there was a correction, the closing price remained slightly above that key level of $10,760. And, in addition, the opening price for the current month of October was also slightly above that level of $10,760. It simply indicates that at the moment the bulls are strong enough to keep the price of Bitcoin above the key resistance level from the high in 2019 and that this time the bears are incapable of reversing the trend from this level. To put it in a nutshell: this time the bulls defeated the bears at the key resistance level of $10,760.
However, as the price of Bitcoin is increasing it is worth to keep an eye on the next key level or $13,880. It was the closing price of the bullish candlestick from December 2017 - the best month in Bitcoin history from price perspective. And it was also the opening price of the bearish candlestick from January 2018 - the month when the Downtrend started (Bear Market). That's why I think that there is going to be an important resistance zone near that level of $13,880. As can be seen in the chart, back in June 2019 the upper shadow/wick of the bullish candlestick tested that level, but the bears immediately sink the price back. That was a sign that the market still remember the level of $13,880 and that its a barricade behind which there are a lot of bears.
Having in mind all that I wrote above, I consider the level of $10,760 as a solid support level and the level of $13,880 as a potential resistance zone.
To be continue ...
So, fellow LeoFinancier, what do you expect from Bitcoin in the next couple of months?
A few words about me:
Just to let you know: I've been working professionally as a currency analyst for the last 14+ years, and as a cryptocurrency analyst for the last 3+ years.
Important!
Keep in mind, that thoughts expressed here are my own, and they should not be regarded as recommendations for any cryptocurrency trades, investments and etc.
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