Bitcoin has hardly moved in the past four days. The price is stuck in a $300 range between $21,200 and $21,500 and has yet to set a clear direction. Currently, the price is still above an important trendline which we will take a closer look at today.
We start by discussing the likelihood of Bitcoin price breaking above this trendline. Below we discuss a bullish scenario and a bearish scenario, focusing on the main price levels.
The important trend line of Bitcoin
In recent weeks, an important support line has been visible in the Bitcoin trend. Whenever the price touched this line, an increase followed. After resistance around $25,000 proved too great, a 12% drop followed, bringing Bitcoin back just above the trendline.
BTC/USDT 1D
The trend for the largest cryptocurrency is at a turning point this week. There are two relevant scenarios this week. A bullish scenario and a bearish scenario.
The first scenario: optimistic
Let’s start with optimism and look at the positive scenario for Bitcoin. In this scenario, the price will rise and stay above the trendline, causing the price to spike and retest the $25,000 resistance. This is a reasonable scenario.
A display that makes room for this is the volume display. In the chart below, you can see that the price continues to fall while the trading volume decreases. This means that fewer and fewer people are selling their bitcoins at lower and lower prices, which is a positive sign and usually indicates a trend reversal.
BTC/USDT 1D
Looking around, however, most investors expect an upward trend from now on. As you may have noticed lately, the majority are usually wrong.
Therefore, I wouldn’t be surprised if the price drops a bit more now, leading to more expectations of a downtrend, only to bounce back strongly afterwards. This is often the game that market makers play with us.
The second scenario: bass player
There is always a chance that the chart of the largest cryptocurrency will turn red. Therefore, it is also good to be aware of this scenario. During a decline, the price will often continue to move sideways, forming a bear flag pattern.
This pattern, as the name suggests, is quite bearish and is characterized by slightly higher highs and lower lows until the price eventually breaks through the support line. We saw that clearly last week and now it can happen again. It is important to keep this possibility in mind.
Btc/usdt 4 hours
If the bearish scenario becomes reality, the main support levels will appear. Think of the $21,600 and the $20,500. You can expect the price to break above these levels. If it gets too colorful, we find strong support around $18,700.
University degree
Right now I’m leaning towards the bullish scenario. Simply because the price is moving above a crucial support zone. Furthermore, there are also positive signs in the traditional stock markets that will benefit Bitcoin. It is, of course, impossible to predict with absolute certainty what will happen. In any case, it is good to be aware of both scenarios and which price levels are relevant.
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Source: Btc Direct
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Barry Siefert is an accomplished journalist and author at The Nation View. He is known for his expertise in the field of cryptocurrency, and has written extensively on the topic. With a background in finance and economics, Barry has a deep understanding of the underlying technology and market forces that drive the crypto industry.
