It is my belief that Bitcoin has found a bit of a bottom for now and is forming some really strong market structure at these levels. BTC broke the 45k resistance levels that I have been watching and has quickly moved up beyond the 47k level. This has been a strong line of support and resistance in the past so what I am thinking here is that we are going to be leveling off soon so we can now hopefully find the 45k level as support once again and bounce off of that.
If you look at the purple channel, this is a range that we could bounce in for a while, between 45k and 50k. It is healthy to build structure in this range because we didn’t spend allot of time here before. This is basically building a bit of a market floor for Bitcoin.
As you can see the RSI is getting into that overbought territory, which means it’s a bit heated and will eventually want to cool down. Just like if you were to sprint from one side of the street to the other, you will eventually need to take a rest.
50K is the next big target that I am watching for a bullish break through. It could take a while like I said to get past these levels, but when it does, oh boy, watch out!
Now looking at the short term on the 1 hour time frame you can see that we are forming a bit of a bull flag and if that breaks out to the upside, we could see a shoot up to that 50k range before we have our cool down. With a bull flag, you will take the length of the flag pole and then use that as your target range, up or down, we are looking up though and that target is around 50k! Now allot of times you may only see 70% of the move, but sometime, you will get an even bigger move than you expect.
So all eyes are really on Bitcoin right now as it is proving that it is a force to behold as big governments are realizing they can’t stop it, and smaller countries are adopting and using it as a way to have sovereign money! Yes there is a ton of development on other blockchains and we use allot of other chains, but as Bitcoin is king of they crypto assets, it has solidified itself as the gold standard of crypto. This is why my personal strategy as well as our group strategy here at Coin Logic is to use these inflationary assets to go into the world’s best deflationary asset. It’s all about finding balance!
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