Bitcoin ranges
By looking at the chart it's quite clear that BTC has 2 very distinct and important ranges.
The blue range between 15.3k & 25.2k has been our home for the past 9 months, by splitting this range up into quarters on the 1d chart you can see that price on many occasions respects these given levels.
The orange range is where we are now, we've broken up past the 25.2k range high and have now entered a range of 25.2k & 32.4k. These prices were set between may and June of 2022 while price was extremely bearish. As the chart suggest price is respecting the quarters of this range already and if we assume they will continue to do so this could be an efficient strategy for swing trading between quarterly limits.
The price ranges of these given segments are show to the left of the chart, this emphasises the need for risk management in a bear market and it's a lesson a lot of traders including myself learn the hard way. By holding onto BTC while it drops from 25.2k to 15.3k you would lose 39% of your investment, for that to break even again BTC needs to increase by 64%, it's something that a lot of people don't take into account so just a little reminder to some beginners.
A lot of people have positioned themselves waiting for a retest of the 25.2k area to ensure that we have entered a new range. I do think it's possible however the market rarely does what the masses expect.
The blue range between 15.3k & 25.2k has been our home for the past 9 months, by splitting this range up into quarters on the 1d chart you can see that price on many occasions respects these given levels.
The orange range is where we are now, we've broken up past the 25.2k range high and have now entered a range of 25.2k & 32.4k. These prices were set between may and June of 2022 while price was extremely bearish. As the chart suggest price is respecting the quarters of this range already and if we assume they will continue to do so this could be an efficient strategy for swing trading between quarterly limits.
The price ranges of these given segments are show to the left of the chart, this emphasises the need for risk management in a bear market and it's a lesson a lot of traders including myself learn the hard way. By holding onto BTC while it drops from 25.2k to 15.3k you would lose 39% of your investment, for that to break even again BTC needs to increase by 64%, it's something that a lot of people don't take into account so just a little reminder to some beginners.
A lot of people have positioned themselves waiting for a retest of the 25.2k area to ensure that we have entered a new range. I do think it's possible however the market rarely does what the masses expect.
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