To those who are wondering what's next for BTC:
We have come up with 4 possible outcomes for BTC, and will explain what conditions must be met if they were to happen.
1. The Continuation of The Rally:
In order to see a continuation of the rally, we would like to see a confirmed break above the downtrend resistance (in red) and the 61.8% fib level (in green). As we have mentioned before, a confirmed break above those levels will allow BTC to move to a higher price range before meeting the next important level, around $9,000.
2. The Uptrend:
In order to confirm a new uptrend for BTC, and finally attempt to reach higher highs, we would likely need to see a confirmed breakout above the $9,000 level. If BTC manages to make a confirmed breakout, it would provide a very bullish indicator at that point. From there on, we might see an attempt to break the $10,000 level we failed to break above back in May.
3. The Failed Attempt:
Assuming we have already broke above the downtrend resistance and the 61.8% fib level, and saw a failure to make a confirmed breakout the $9,000 level. This failure could indicate a market weakness that could send us right back into a downtrend cycle, as we've seen from our failed breakout at $10,000.
4. The Fall:
From our current level, we would need to see a confirmed breakdown below the 1200 EMA (in purple). From then on, there is a possibility of reaching a new bottom before we can go up again. Of course, we would need to see many conditions met before this can be confirmed as a downtrend. There are key levels that BTC has to break below, in order to find a new low. Why did mention a (new) low rather than just a low? New lows are healthy for markets to find (if the market has been in an extended downtrend cycle, as BTC has been experiencing), as it provides an entry level to many new or hesitant buyers in the market.
Keep in mind, all these outcomes are not set in stone, as regulatory news is on the minds of every crypto trader/investor; we must also be on the watch for any important developments that might affect market sentiment (such as the ETF approval/rejection).
We hope that our analysis has in some way helped you in your crypto journey.
Thank you for reading!
Your feedback would mean a lot.
We have come up with 4 possible outcomes for BTC, and will explain what conditions must be met if they were to happen.
1. The Continuation of The Rally:
In order to see a continuation of the rally, we would like to see a confirmed break above the downtrend resistance (in red) and the 61.8% fib level (in green). As we have mentioned before, a confirmed break above those levels will allow BTC to move to a higher price range before meeting the next important level, around $9,000.
2. The Uptrend:
In order to confirm a new uptrend for BTC, and finally attempt to reach higher highs, we would likely need to see a confirmed breakout above the $9,000 level. If BTC manages to make a confirmed breakout, it would provide a very bullish indicator at that point. From there on, we might see an attempt to break the $10,000 level we failed to break above back in May.
3. The Failed Attempt:
Assuming we have already broke above the downtrend resistance and the 61.8% fib level, and saw a failure to make a confirmed breakout the $9,000 level. This failure could indicate a market weakness that could send us right back into a downtrend cycle, as we've seen from our failed breakout at $10,000.
4. The Fall:
From our current level, we would need to see a confirmed breakdown below the 1200 EMA (in purple). From then on, there is a possibility of reaching a new bottom before we can go up again. Of course, we would need to see many conditions met before this can be confirmed as a downtrend. There are key levels that BTC has to break below, in order to find a new low. Why did mention a (new) low rather than just a low? New lows are healthy for markets to find (if the market has been in an extended downtrend cycle, as BTC has been experiencing), as it provides an entry level to many new or hesitant buyers in the market.
Keep in mind, all these outcomes are not set in stone, as regulatory news is on the minds of every crypto trader/investor; we must also be on the watch for any important developments that might affect market sentiment (such as the ETF approval/rejection).
We hope that our analysis has in some way helped you in your crypto journey.
Thank you for reading!
Your feedback would mean a lot.
Check out our most recent posts for more updates!