Bitcoin (BTC): Breakout From Major Resistance of $40K Zone
Updated
The new week has started with a magnificent breakout (breaking the 40K zone without any significant resistance).
During the Asian trading hours, Bitcoin has had a breakout from the 40K zone and is currently aiming for the 41.5K zone. As many (including us) waited for some major rejection to happen near 40K, it came to the conclusion that we needed to wait for at least London trading hours to open in order to see how it would be moving during that time there!
P.S. We are not passing completely on the idea of correction (which historically showed same setup as we are seeing right now and Resulted in a nice 60% downfall before the actual halving happened)
On a weekly timeframe, we want to see how the weekly candle will close this week, but the opening of the candle is rather bullish as of now. Eyes open for a potential fakeout of a long squeeze to happen!
During the Asian trading hours, Bitcoin has had a breakout from the 40K zone and is currently aiming for the 41.5K zone. As many (including us) waited for some major rejection to happen near 40K, it came to the conclusion that we needed to wait for at least London trading hours to open in order to see how it would be moving during that time there!
P.S. We are not passing completely on the idea of correction (which historically showed same setup as we are seeing right now and Resulted in a nice 60% downfall before the actual halving happened)
On a weekly timeframe, we want to see how the weekly candle will close this week, but the opening of the candle is rather bullish as of now. Eyes open for a potential fakeout of a long squeeze to happen!
Note
On a daily timeframe, attention caught two things: a very sharp breakout from the trend and a 40K zone (crushing it compliantly) + a three-white Solder candle formation.
Note
Another day after that massive breakout from the 40K zone, which resulted in some massive liquidation hunting on the markets,
We are yet back in overbought zones with RSI while also forming multiple new FVG zones on new high levels. The major target is still that FVG zone near the $30–32K zone.
Greed & Fear Index: Greedy and Growing
Note
Another day, and the price of bitcoin is just pushing and pushing further. All the possible positions were liquidated and now all the stops have shifted to lower zones here (information from BTC/USDT Liquidation Heatmap)
Now we see that the daily candle got pushed far up, securing fully not only 40K but also the $42,500 zone as well, which means the surge in buys is still there and people are buying in and pushing the prices up.
With that being said, we see prices reaching a lean $45,500 zone, but we might even reach a tough
48K zone as well. We can't forget also that we are still having "pre-halving push," which usually doesn't end well.Note
We see that after the major push and strong breakout from the 40K zone, the price has stopped as of now near the 44K zone, showing us some sort of weakness point there.
Although the most reasonable zone from which we should be having resistance is $45,500 zone (or around it), we need to bear in mind that BTC is heavily overbought and every indicator has been telling us basically now or never (to sell)
With that being said, Todays Daily candle is showing weakness while getting slowly rejected near the 44K zone (if it continues, we might see some very sharp rejection / if bulls don't take over to reclaim that $45,5K zone).
Greed & Fear Index: Greedy and Growing
Note
After a bullish surge, we're witnessing potential signs of exhaustion as the second daily candle indicates a potential pullback, hinting at market hesitation
Should we observe a third bearish candle, the 'Three Black Crows' pattern could emerge, which traditionally signals a stronger reversal trend.
If today's candle will also close in red, then we might not see the 45,500 zone to be reached!
Greed & Fear Index: Still Greedy / 72
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