Bitcoin Technical Analysis
- Chris Trader
- Jul 5, 2023
- 1 min read
Bitcoin has demonstrated an extraordinary ability to withstand a multitude of negative events, such as regulatory crackdowns and increased interest rate expectations. Despite facing significant challenges, this cryptocurrency continues to exhibit strength and is currently poised to achieve new record highs. Only a severe economic recession or an excessively hawkish stance from the Federal Reserve could potentially impede Bitcoin's ascent. However, even in the event of a sell-off triggered by these scenarios, it is highly likely that Bitcoin would experience a robust recovery once the Federal Reserve begins to lower interest rates.

Examining the daily chart, we observe that Bitcoin experienced a significant surge after surpassing the trendline, propelling it to reach a high of 31K before encountering resistance. Monitoring this crucial level is essential as a decisive breakthrough could potentially trigger a rally towards the 45K level. It is anticipated that sellers will likely enter the market at this juncture, assuming a well-defined risk positioned above the resistance level, with the aim of targeting the 25K support.

Analyzing the 4-hour chart, it becomes evident that Bitcoin has encountered considerable difficulty in surpassing the resistance level, resulting in a consolidation phase just below it. Presently, there exists a support zone around the 29,500 level and a resistance zone around the 31,000 level. In situations like these, it is often prudent to await a definitive breakout and capitalize on the subsequent momentum. Alternatively, one can adopt a "range trading" strategy by purchasing near the support level and selling near the resistance level.
Chris
Head Trader & Coach
www.thetradingmentors.com
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