What Bitcoin's break of 74k means
On the monthly and weekly timeframes, Bitcoin seems to be forming a continuation pattern which might push the price up to a new ATH (All Time High).
While this is good news for Bitcoin Hodlers, I personally would only be looking for buy positions once the price breaks and stays above the 74k price line. The reasons for this decision is as follows:
- Bitcoin is currently at an interesting price zone as Bulls seem to be struggling to break and keep price above previous ATH's supply zone. I'm however only going to be convinced of continued bull run if price breaks and holds above 74k price line. if this happens, I'll be looking for buy positions on pull-backs.
- Price is forming what looks like a rising wedge on the daily timeframe. For those who might not be familiar with this pattern, it's a reversal pattern, meaning price is more probable to break and trade below the lower trendline whenever this pattern forms.
- Because this price level is at an interesting zone, it could be institutional traders and whales are secretly selling off their positions (price distribution) which might see us in the next phase of bear run. While this is mere speculation, it's good to be on the look at because anything can happen.
Given the above reasons, I'm still very bullish on the price till I see a break below the Weekly HL (Higher Low) at 49k or a break below the Monthly Trendline.
Note that I do not take positions based on what I anticipate price to do. I take positions when price does what I anticipate and presents my entry signal.
Please let me know what you think about this. Would love to know your thoughts too about the short and long term price of Bitcoin.
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