Let's analyze the BTC/USDT chart on a 3-day (3D) timeframe from a technical and psychological perspective to identify a potential passive income strategy.
Technical Analysis
Price and Trend:
Bitcoin's current price is $84,942.97, very close to its all-time high of $85,470.01 (as per the chart).
The overall trend is bullish, as seen from 2024 to 2025, with a steady increase from $40,000 to current levels.
However, the price appears to be consolidating near the historical resistance of $84,942-$85,470, indicating a possible pause or pullback before a new push.
Moving Averages (EMA):
The chart shows several EMAs (10, 20, 50, 100, 200). The price is above all of them, confirming a strong uptrend.
The 10-EMA (108,581.19) is well above the current price, which is unusual and could be a chart error or a misleading indicator. Typically, the 10-EMA should be closer to the price in an uptrend.
The longer EMAs (such as the 200-EMA at 64,587.68) act as dynamic support. If the price pulls back, this level could be a buy point.
Supports and Resistances:
Resistance: The $85,470 level is a key resistance. If the price fails to break through here, we could see a pullback.
Support: The $83,609.94 (EMA 20) and $72,039.42 (EMA 50) levels are nearby supports. Further down, $64,587.68 (EMA 200) is a strong support.
Price has respected these levels in the past, making them reliable for a strategy.
RSI (Relative Strength Index):
The RSI is around 70, indicating that Bitcoin is in overbought territory.
An RSI above 70 typically indicates that the asset may be overvalued in the short term, increasing the likelihood of a pullback or consolidation.
Volume:
Volume has decreased in recent days, suggesting a lack of strength to break through resistance immediately.
An increase in volume would be necessary to confirm a bullish breakout.
Psychological Analysis
Market Sentiment:
Bitcoin nearing its all-time high is generating euphoria among retail investors, which can lead to impulse buying and FOMO (fear of missing out).
However, experienced traders know that overbought levels (RSI > 70) and a lack of volume often precede pullbacks. This creates an opportunity for more conservative strategies.
Behavior in Resistors:
Psychological levels like $85,000 are points where traders tend to take profits, which increases selling pressure.
If the price doesn't break through resistance, many retail traders could panic and sell during a pullback, while institutional traders would take advantage of the opportunity to accumulate at key support levels.
Passive Income Strategy
Given the analysis, a viable strategy for generating passive income would be to "Buy the Dip" and hold long-term, combined with staking or yield farming if the platform allows it (e.g., Binance). Here's the plan:
Prohibited:
Expect a pullback to key support: $83,609 (EMA 20) or $72,039 (EMA 50). The $72,039 level would be ideal, as it represents stronger support and coincides with a healthy 15-20% correction from current levels.
Confirm your entry with an increase in volume and an RSI that drops below 70 (ideally between 40-50, neutral or oversold zone).
Risk Management:
Place a stop-loss below the support at $64,587 (EMA 200) to protect against further decline.
Invest only a percentage of your capital (e.g., 20-30%) to diversify your risk.
Passive Income:
Once purchased, you can use Bitcoin in staking or lending programs on Binance (or similar platforms like BlockFi or Nexo, if available).
These platforms offer annual percentage yields (APY) that typically range from 3% to 6% for Bitcoin, depending on market conditions.
Alternatively, if the price rises after your purchase, you can sell a portion of your position at the resistance of $85,470 and reinvest the proceeds into staking to generate additional passive income.
Exit:
If the price breaks $85,470 with volume, the next target could be $90,000-$100,000 (psychological levels).
Take partial profits at each level and keep a portion in Staking for ongoing income.
Summary
Technical Opportunity: Wait for a pullback to $83,609 or $72,039, buy on volume and RSI confirmation, and hold long-term.
Psychological Opportunity: Take advantage of the market's FOMO to enter support during a pullback, while retailers panic sell.
Passive Income: Using Staking or Lending to generate an annual return while maintaining a long-term bullish position.
This strategy combines solid technical analysis with market behavior, minimizing risk and maximizing passive income potential.
Disclaimer: #AnfeliaInvestment is not a financial adviser; please consult one. Don't share information that can identify you.