The technical charts of Bitcoin were signing a bullish pattern in 4-hour charts even though it would be an early attempt in the daily and weekly timeframes. As a result, the news that an ETF was listed made people rush into crypto though the news was misleading.
When Bitcoin crossed the strong resistance level of 28K, it was an indication of positive vibes in crypto ecosystem. Then, the charts speak themselves. Both Bitcoin and the altcoins have gained around 30% value as a result of the bullish sentiment thanks to the news.
It is always too hard to guess the extent to which Bitcoin may go up but combining technical and fundamental analyses may give us a better vision for what's next.
Technical Side of 33K
There are several critical support and resistance levels to check while trading Bitcoin. First of all, we need to focus on one of them that has more impact on the market than the rest!
Please look at the daily chart that I shared abouve.
The white line indicates the level around 33K that will be an important support or resistance level. On the side of bullish sentiment, staying above 33K will let Bitcoin aim to higher levels around 40K in the short term whereas staying below 33K may end up with the same trend levels in which we were trading Bitcoin between 23K - 28 for a very long time.
On the technical chart, my humble expectation is rather bearish as I have been keeping my bearish side active in the ecosystem. In the case that we see weekly closes below 33K, my target will be 23K (or at least around it) to make more purchases. In the condition that everything goes even worse, it would not be surprising to see 19K or even 15K but these are pretty unlikely scenarios.
Briefly, above 33K in the weekly close, 40K would not be surprising.
Below 33K, we go back to the 23K - 28K trend and the bearish scenario would be 23K, 19K, or even 15K but the last 2 are pretty unlikely to happen soon.
Fundamental Side of 33K
Though there has been some nice price actions, we do not see a major change in the number of new investors or astonishingly high volume in the coins so far. While the interest rates are high and quantitative tightening is strictly followed, it is too hard to find new people to put their money into crypto if they have some extra for investment.
The "cost" of money has increased with the interest rate hikes. Now, the only sustainable price action in crypto can be possible when the quantitative tightening is over and there will be no more interest rate hikes.
One more forgotten FUD in crypto is that the case of FTX had impacted the US investors thoroughly and there will be the second round of this case before the next bull market. This unsolved battle will be finalized with a lot of blood in the market.
On the positive side, crypto is the seat belt of the markets. Thanks to our market, the investors of NASDAQ, S&P and other markets do not get into a deep depression and sell off everything they hodl. Rather, crypto acts as a facilitator to comfort the investors who lose money and show them a second alternative to put their money in 😉
I really wonder which side will outperform. Bitcoin has tested the higher levels than I expected. Let's see if the rest will also happen as I forecast.
What do you expect to see in crypto market in the short term?
Share your thoughts below 👇
Hive On ✌🏼