The $9,000 support region has been coming into play over and over again these past few weeks. I also talked about it in my previous Bitcoin analysis, shedding light on how a break of this support could mean more bearish momentum coming into the Bitcoin market and a larger bearish retracement for Bitcoin for the short term.
In this Bitcoin Analysis, I will be analyzing the current Bitcoin price action and talking about the important levels I will be watching for on both the bearish and bullish side.
Taking Advantage Of A Bitcoin Berish Move
For me to confirm the start of the short term bearish retracement on Bitcoin, I must see a clean break and price close below the current $9,000 support region. I would also want to see an increase in bearish trading volume.
This way, I won’t get caught in the bear trap and see the bitcoin price reverse and shoot up like it did in yesterday’s attempted bearish break.
Target Levels To Watch Out For
The target levels I will be watching out for in the case of a bearish move are the $8,000 support region, $7,000 support region, and a break of that could see the price crashing to the $6,000 support region or even lower.
Taking Advantage Of A Bitcoin Bullish Move
Bitcoin recently broke out and is currently trading below the ascending triangle pattern. A move back into this triangle pattern could see the bearish pressure on bitcoin ease. However, that does not guarantee the resumption of the bullish trend.
For the Bitcoin bullish trend to continue, the bitcoin price must first break through the $10,000 resistance region.
Price as tested this resistance region over and over again for the past few weeks but has been unable to breakthrough.
So, until one of this price prediction scenario occurs and bitcoin either becomes more bullish or bearish for the short term, I will remain neutral and wait for my high-quality trading setups to occur.
Market Correlation and Long Term Outlook On Bitcoin
The long term outlook on Bitcoin is remaining very bullish, we are also seeing a lot of positive fundamentals and growth news coming out at this point in time on bitcoin.
Bitcoin is also experiencing an influx of institutional investors buying very large amounts of Bitcoins and pushing the Bitcoin price higher. An example of such institutions is “Grayscale”.
Grayscale recently purchased 19,000 BTC worth about $185 million in just one week. This is a positive development for Bitcoin and if it continues, it can lead to the next explosive rise of Bitcoin to the $100k level.
However, Bitcoin is still largely correlated with the stock market. This correlation is holding the cryptocurrency back and holding it from achieving the massive growth that it deserves.
I will continue to keep an eye on this correlation metrics to see how Bitcoin handles it.
To gain more information on how to partake in this coming Bitcoin Bull run and trade this cryptocurrency, you can read my How To Trade Bitcoin Guide. You can also check my top list of Best Bitcoin Exchanges To Trade With.