Bitcoin Shoters Must Read: A Sweet Spot for Shorting or a Trap?
Updated
The current price range of BTC is influenced by previous reactions to the
26800 to 32400 resistance range,
which is a significant point of interest for buyers and sellers.
This range has played out in the past, with trading occurring more frequently at this price compared to nearby support and resistance zones.
The current pull-up in BTC is not a clear sign of a bull market but a secondary trend, which is a reaction to the primary trend. Resistance is not a specific price but a price range, and
patience is required for buyers to max out. There is a high chance of BTC being rejected in this zone, leading to a resumption of the primary trend.
The chances of BTC reaching 40k before this primary trend resumes is up to 45%, but the resistance in this zone tends to be jam-packed, making the less resistance direction downward. The best point to short BTC would be after the bulls' second attempt to cross the resistance range, and only when the chances of it going down improve to at least 78%
to 80%. A move down would lead to bulls trying to max out around this range to continue the primary trend, providing a sweet short target at
24k, 20400, 18k, 16k, and possibly 12k.
26800 to 32400 resistance range,
which is a significant point of interest for buyers and sellers.
This range has played out in the past, with trading occurring more frequently at this price compared to nearby support and resistance zones.
The current pull-up in BTC is not a clear sign of a bull market but a secondary trend, which is a reaction to the primary trend. Resistance is not a specific price but a price range, and
patience is required for buyers to max out. There is a high chance of BTC being rejected in this zone, leading to a resumption of the primary trend.
The chances of BTC reaching 40k before this primary trend resumes is up to 45%, but the resistance in this zone tends to be jam-packed, making the less resistance direction downward. The best point to short BTC would be after the bulls' second attempt to cross the resistance range, and only when the chances of it going down improve to at least 78%
to 80%. A move down would lead to bulls trying to max out around this range to continue the primary trend, providing a sweet short target at
24k, 20400, 18k, 16k, and possibly 12k.
Note
The BTC buyers and sellers battle between 26800 to 30k warrants careful examination. As previously mentioned, attempting to short BTC may not benefit bears on the first try, as it has not played out well thus far. While the bulls have approached their maximum at 29200, they have managed to trap all bulls thus far. The interesting aspect of this price zone is that not only are the bulls currently trapped, but we are also witnessing early shorters being trapped as well. This situation implies that the ultimate outcome will be catastrophic, as one side must overpower the other. My prediction is that the bears will win this battle, but not before many more bulls are trapped around about 3k range up from here. I have been waiting for a week to short and will continue to patiently wait, as the battle is not yet completely won. If you plan to short BTC, you must exercise patience, as the bulls are currently being pulled toward the 30k round-number resistance. They may exceed this level slightly to venture into the 31k zone, but this will only lead to a bigger trap. Going short may prove more profitable than going long, as the bears seem to be cooking up a trap before BTC reaches 32k. Expect a massive reaction when this occurs.Note
Buyers of BTC have reached the long-awaited resistance range of 30k. It is anticipated that they will reach their maximum potential in this range. A strong reaction is likely to occur within the 30k to 32500 range, particularly around the 31690 mark, which presents a good opportunity for Short entry. The ideal time to short will be during a second reaction to this range, with the possibility of a new low forming after the first rejection. This second reaction will involve a retest of the resistance range. This range has previously established a high trading area for both bulls and bears, with the chance of a strong rejection that could result in BTC falling back to the 26k to 24k range
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