BTC and Crypto fans in general should be rightly optimistic for the future price direction of the asset. BUT before we get carried away with the dream of $100k or $1million price target there are some technical aspects we should be aware of in the months ahead.
First of all, allow me to explain why there should be optimism from my technical viewpoint. If we view the weekly log chart of BTC, we can clearly see that the current rally is the largest since the peak in Nov 2021 (yellow circle). Within this rally, we also saw the largest weekly bullish candle/bar.
Both of these observations tell us that there has been a change in the price behaviour caused by market participants. I'm sure there are many fundamental reasons that can be attributed to this. Feel free to share your reasons in the comments.
A change of behaviour does not in itself signal a Bullish trend change. It only points to a high probability that the downtrend has ended. There is still the chance that the price reverses to set a new low. A weekly close below the Nov 2022 low will signal that the downtrend is far from over.
If prices have peaked for now, I would expect the price to re-test the Nov 2022 low. How low that re-test goes is anyones guess, it could be shallow or deep. What is important is that the price holds above the low. With a subsequent price break above the recent high at $24200, that will be the strongest signal that a new Bull market has began.
But don't get too excited just yet, the price may also take time (months) to consolidate (move laterally) prior to breaking the recent high. We will need to be patient with the knoweldge that as long as the low is not broken, the Bull market will come.
First of all, allow me to explain why there should be optimism from my technical viewpoint. If we view the weekly log chart of BTC, we can clearly see that the current rally is the largest since the peak in Nov 2021 (yellow circle). Within this rally, we also saw the largest weekly bullish candle/bar.
Both of these observations tell us that there has been a change in the price behaviour caused by market participants. I'm sure there are many fundamental reasons that can be attributed to this. Feel free to share your reasons in the comments.
A change of behaviour does not in itself signal a Bullish trend change. It only points to a high probability that the downtrend has ended. There is still the chance that the price reverses to set a new low. A weekly close below the Nov 2022 low will signal that the downtrend is far from over.
If prices have peaked for now, I would expect the price to re-test the Nov 2022 low. How low that re-test goes is anyones guess, it could be shallow or deep. What is important is that the price holds above the low. With a subsequent price break above the recent high at $24200, that will be the strongest signal that a new Bull market has began.
But don't get too excited just yet, the price may also take time (months) to consolidate (move laterally) prior to breaking the recent high. We will need to be patient with the knoweldge that as long as the low is not broken, the Bull market will come.
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✅ Copy My Trades @ eToro, etoro.com/people/mrstocky
✅ Verified Track Record 📈
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The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
🏆 eToro Popular Investor 💰
✅ Copy My Trades @ eToro, etoro.com/people/mrstocky
✅ Verified Track Record 📈
Not Investment Advice
✅ Copy My Trades @ eToro, etoro.com/people/mrstocky
✅ Verified Track Record 📈
Not Investment Advice
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.