BTC is about to trigger a bull run! Here are some levels to look out for in order to stay safe from unexpected price breakdowns!
Here is the summery of pervious updates:
After making all-time-highs at the start of November, Bitcoin (BTC) has been on a constant downtrend. This could be due to a culmination of factors. Due to the fact that the price broke down its bullish market structure on the 1-day chart, it can be inferred that there was not enough buying pressure or the sellers believed that prices above $60k were more than the fair value for BTC.
At current prices, BTC has fallen more than 30% from the top at $69,190. Market sentiment is extremely low. This is because many market participants were exposed to higher beta alts that have been hit much harder, however, the future is likely not bleak. It has been proven in history time and time again that when everyone is scared, it is a good idea to look for entries in the market. Let’s look at the 1 Day chart to see what has happened.
BTCUSDT in a 1 Month Chart
The price is currently sitting on a bullish trend line, as buyers have clearly stepped in here. This potentially could be a great place to add more BTC to the portfolio, especially into January, which is generally a bullish month for BTC, averaging a return of 12%.
If BTC was to consolidate in a range between $47,000 and $62,000, it could result in an altcoin bull run, mainly for the alts showing continued strength here. The price only has a bearish structure if it closes below 35k on the monthly chart. Therefore, there is no need to panic as of yet.
BTCUSDT 1-Week Chart
On the BTC 1-week chart, the price still has a bullish market structure. The demand zone around $45,500 — $47,500 held the price up here. If buyers allow the market to close below $43,000, it would constitute a bullish market structure breakdown and the formation of a bearish market structure for BTC on the weekly chart will begin. This would likely send the price down to low test ranges at $30,000.
This is not something to worry about right now as price is sitting on support, whilst also being in a ‘golden pocket’ Fibonacci zone. $45,000 is an area of significant confluence, therefore, if buyers can hold this, there is no reason why BTC cannot move higher.
BTCUSDT in a 1 Day Chart
BTC Price broke bullish market structure at $63,400 forming a clear downtrend and currently moving in the downward channel. Lower highs continue to form on the daily chart where an attempt to close above is quickly batted away by sellers. The price likely started to range between $45,000 to $52,000.
However you can see the better view of this trendline on the BTCUSDT in a 4H Chart
BTCUSDT Price Prediction
If the price does start to consolidate around $40,000, buyers will likely start to accumulate, as this was the top of the previous accumulation range and should offer good support. Nevertheless if the price reclaims $52,700 then this would allow us to move to $57,000. If it breaks below $40,700, then $30,000 would come into play, however this would be an incredibly good buying opportunity.
BTC Dominance in a 1 Week Chart
BTC dominance is consolidating right now at a high demand level. This is where you would potentially see a bounce, which usually signals BTC strength against the market. So it would likely be the best bet to be invested in BTC. For a run to be sustained, it has to move first and pull the market up with it. If alts, such as Ethereum, attempt to drag BTC up, it will likely be a short-lived move. Therefore we want BTC to pump here and lead the way.
- We are currently in a downtrend on the BTC daily chart. Until the price breaks $52,000 level, it is likely that BTC will range between $52,000 and $42,000.
- 1-week and 1-month BTC charts have bullish structure with the 1 week sitting in a ‘golden pocket’ Fibonacci zone.
- Bitcoin Dominance is at the support level. In case of a pump, it will suck the liquidity out of the altcoin market.
- Overall market momentum for BTC seems to be neutral. Although there is a chance that the price may consolidate all the way down to $42,000, it is extremely likely that price has found a bottom for now.
- Although BTC is in a downtrend on the 1-day chart, there is a significant demand at $42K. It is therefore wise to look for the best entry points to go long around those levels.
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