Bitcoin is showing some potential bullish signs even though it is still in a consolidation phase. However, it is necessary to be cautious and consider possible bearish scenarios.
Detailed analysis
* Price action:
* As mentioned earlier, there was a strong uptrend from September to December, peaking at around $109,588.
* Since then, Bitcoin has entered a consolidation phase with some bearish momentum.
* Current price is around $95,862, which is closer to the lower range of the last consolidation.
* Support and resistance:
* Support levels:
* $92,000 - $96,000 (current range)
* $88,000 (next major support)
* Resistance levels:
* $100,000 - $104,000 (near recent highs)
* $109,588 (resistance peak)
Direction:
* Red candles forming near resistance indicate some short-term bearish momentum.
* However, the price has not fallen below the strong support yet, indicating that a long-term uptrend is still possible.
Business proposal
* Entry: Buy if BTC settles above the $94,000-$96,000 support level and shows bullish momentum.
* Stop Loss: Below $92,000 to protect against further downside.
* Profit making:
* First: $100,000
* Second: $104,000.
* 3rd (Long Term): $109,000+ if bullish momentum returns and continues.
Alternative bearish scenario
* If BTC drops below $92,000 and shows strong bearish momentum, take profit at $88,000 and stop loss above $96,000.
Final Verdict
* If BTC price stays above $94K-$96K and shows bullish momentum → Buy with take profit at $100K-$104K.
* If BTC drops below $92k and shows strong bearish momentum → Sell with take profit at $88k.
Important Warnings
*This analysis is based on historical data and may not necessarily be indicative of future results.
* The cryptocurrency market is very volatile, so you should be careful and manage your risks properly.
* Do not invest more than you can afford to lose.
*It is important to do your own research before making any investment decisions.
Additional notes
* Monitor trading volume: Trading volume can provide additional information about the strength of a trend. If trading volume is high during rallies, it indicates strong interest from buyers.
I hope this analysis was helpful. Remember that trading involves risks, so be careful and always do your own research.
Final advice: Avoid large financial leverages to avoid losing all your capital.