Bitcoin has made several attempts breaking out of 31k zone but quickly got rejected back to 29k level. The market exhibits an extremely tight consolidation range. What's next?
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WHAT'S HAPPENING?
Bitcoin continues ranging in a tight consolidation. Major resistance is 31k and major support is 29k (currently). For now, it's a NO trading zone. Price still lingers in-between this consolidation zone (29k - 31k) and continues to manifest within a tight range.
WHAT TO EXPECT?
When price acts indecisive within a tight consolidation range, it's better to just wait. You ONLY start trading based upon price confirmation. If you always have that urge of trading or continuously blame yourself for not entering a trade (just because coincidently the market might go to your "predicted" levels), you're simply gambling and wasting your time. That is a bad habit and you will end up losing your chips.
But one thing we know: "The tighter the consolidation, The more impulsive the next move might be", either to the upside or downside. And that "next move" will be more likely to be in favour of the on-going market structure. For now, the overall 2023 market is upside.
Thoroughly investigating 2023 market, it's funny how Bitcoin has played out in terms of market structure. An impulsive move to the upside is followed by a complex consolidation range, then a sudden 7-10% dip before making another impressive up-shift move. We briefly split 2023 market into 3 parts:
PART 1: 2023 FIRST IMPULSIVE MOVE
- Time: Jan 2023 - mid Mar 2023
- Impulsive bull-run: 16.5k - 25k
- Consolidation range (correction range):19.5k - 25k
- Neckline (red line): 21.5k
After an impressive bull-run, Bitcoin consolidated within a wide range of 21.5k - 25k for one month then brutally dipped below the neckline to 19.5k level before heading north again.
PART 2: SECOND IMPULSIVE MOVE
- Time: mid Mar 2023 - May 2023
- Impulsive bull-run: 19.5k - 29.5k
- Consolidation range (correction range): sub 25k - 29.5k
- Neckline (red line): 27k
Bitcoin exhibited price action in similar fashion, compared to PART 1 move. After roughly 2 months of ranging between neckline and key resistance of 29.5k, price finally dipped below the neckline of 27k and reached to sub 25k level, before heading north again
PART 3: CURRENT PRICE ACTION
Despite all historical comparison is relative, it's also a strong indicator and a reliable reference of how the price structure might be in the future. We are currently situated within a tight consolidation range of 29k - 31k with a potential neckline at 29k. It will be no surprise if Bitcoin dips below this support and reaches for 27k - 28k level.
The overall trend of 2023 is still bullish so far. Even if Bitcoin dips to 27k - 28k level, this will NOT be the end of the world but in fact, a great opportunity for swing trade LONG and a perfect chance to pile up your hodl-ing stack.
__________________________________________________________________________________
WHAT'S HAPPENING?
Bitcoin continues ranging in a tight consolidation. Major resistance is 31k and major support is 29k (currently). For now, it's a NO trading zone. Price still lingers in-between this consolidation zone (29k - 31k) and continues to manifest within a tight range.
WHAT TO EXPECT?
When price acts indecisive within a tight consolidation range, it's better to just wait. You ONLY start trading based upon price confirmation. If you always have that urge of trading or continuously blame yourself for not entering a trade (just because coincidently the market might go to your "predicted" levels), you're simply gambling and wasting your time. That is a bad habit and you will end up losing your chips.
But one thing we know: "The tighter the consolidation, The more impulsive the next move might be", either to the upside or downside. And that "next move" will be more likely to be in favour of the on-going market structure. For now, the overall 2023 market is upside.
Thoroughly investigating 2023 market, it's funny how Bitcoin has played out in terms of market structure. An impulsive move to the upside is followed by a complex consolidation range, then a sudden 7-10% dip before making another impressive up-shift move. We briefly split 2023 market into 3 parts:
PART 1: 2023 FIRST IMPULSIVE MOVE
- Time: Jan 2023 - mid Mar 2023
- Impulsive bull-run: 16.5k - 25k
- Consolidation range (correction range):19.5k - 25k
- Neckline (red line): 21.5k
After an impressive bull-run, Bitcoin consolidated within a wide range of 21.5k - 25k for one month then brutally dipped below the neckline to 19.5k level before heading north again.
PART 2: SECOND IMPULSIVE MOVE
- Time: mid Mar 2023 - May 2023
- Impulsive bull-run: 19.5k - 29.5k
- Consolidation range (correction range): sub 25k - 29.5k
- Neckline (red line): 27k
Bitcoin exhibited price action in similar fashion, compared to PART 1 move. After roughly 2 months of ranging between neckline and key resistance of 29.5k, price finally dipped below the neckline of 27k and reached to sub 25k level, before heading north again
PART 3: CURRENT PRICE ACTION
Despite all historical comparison is relative, it's also a strong indicator and a reliable reference of how the price structure might be in the future. We are currently situated within a tight consolidation range of 29k - 31k with a potential neckline at 29k. It will be no surprise if Bitcoin dips below this support and reaches for 27k - 28k level.
The overall trend of 2023 is still bullish so far. Even if Bitcoin dips to 27k - 28k level, this will NOT be the end of the world but in fact, a great opportunity for swing trade LONG and a perfect chance to pile up your hodl-ing stack.
