The media is full of news and there is a slight optimism for further upward movement. But before making any FOMO decisions you should always research the market situation and consider where the market is located. As the market seems to be undecided at the moment, let’s discuss both sides.
A look at the downtrend channels shows us that we are still inside the most recent one. The upward movement does not change our situation at all. To trigger a bullish signal the Bitcoin price has to reach the 7200 – 7400 range which seems unlikely at the moment but it could be possible with some major bullish news. However, the UK cracking down on crypto
and the negative decisions on ETFs should continue to contribute to bearish price action on the chart. In fact, as of writing this, the price started to fall again. Also, the fact that Bitcoin has touched the major resistance line at around 5800 – 6200 now in less than a month now twice is another bearish signal. Especially since it is the fourth time since the beginning of the bear market in December.
Therefore, we would advise you to maintain an observant position at most before entering. From our point of view bearish price action seems more likely. And it is very well possible that we will move below the resistance line significantly. Especially if we look at our “normal growth” chart of Bitcoin.
So our personal entry zones are significantly below the resistance and above the uptrend channel. At 4400 – 4800 and 6800 – 7200.
Hope you trade successfully and of course DYOR.