It has been a while since we updated our analysis of BTC. To recap, our view about a month ago was bearish though with a chance of price reaching up to 13400. To our surprise and as you can see from the picture below, price managed to climb higher, reaching our target in the bullish scenario. We therefore believe that now is the time to update our analysis for you guys to know what scenarios might crystallize from this set up.
As we have said previously, on the intermediate time frame, Bitcoin is bearish despite its recent run up. To understand why, it’s important to look at the RSI line, which already a month ago crossed the established trend line. That by itself, as you can see, wasn’t enough for traders to get worried. The price established new high, RSI tried to get back into the outlined channel, and as you can see, it failed. It stayed there just for a brief moment until bulls hit resistance and bears again managed to regain control. Now, the question is whether there is still some place for growth or whether this is simply another sell off before the pump.
If you believe that price might still reach new highs, then the next target would be around $15530 with a possibility of break out to the new all-time highs if accompanied by large buying volume. If however these new highs are not reached and bulls don’t manage to hold the price afloat, there is a possibility of a drop with a first support at $8701. If the drop is not accompanied by a large volume, chances are that minor supports could become local lows. If the drop happens on the large volume though, it might be that the price will go directly to the major supports, and even these might not hold for a long time. It therefore all depends on the direction and the strength of the next rally.
No matter on which side you are, we wish you a successful trading! The next move is very likely going to be powerful, and being prepared is the key to ride this wave correctly. Until next time, good bye!
