Here we have BTC/USD on the 8H chart.
BTC/USD appears to be in an up move. Price recently broke down and hit the lowest low on 2nd February, and price hit 8012 at this point. Since hitting this low, price has had some upside since.
Price is picking up momentum to the upside. Price had an initial low at 8012, and is since recovering. Price is trading under a side-wards resistance line which at current levels is at 10760. Once the side-wards resistance line is broken, I am expecting some nice upside potential.
I am expecting Bitcoin to continue with the current upside momentum, and I am expecting a move to at least 10760. It will move further if the side-wards resistance line is broken and is tested as a support.
This trade could play out in 2 ways, I have outlined these below:
-Price continues it’s strong momentum to the upside, and hits the upside target at 10760 in one strong swing move. Bare in mind if this does happen it is extremely likely that price will once again be going back into higher levels, and would show a significant change of investors sentiment in Cryptocurrency as a whole, and prices returning to their higher levels would be extremely likely.
-Price retests the horizontal at around 10760 before a retest to the side-wards at around 9200 before the up move begins, where we will hit the upside target of 13100.
Bare in mind, the first scenario above is preferred to the second. A straight breakout of the side-wards resistance and a retest as a new support would show a huge change of ideology in the market, and the markets could legitimately see some stellar upside.
If price retests the lower support, it will still bounce and go to the upside, but it is less likely. The first scenario above is the ideal one for Bitcoin’s best outcome.
I will updating this analysis if it receives more than 40 likes.
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