Good day Hiveians!
Join me in analyzing the crypto markets!
Last week's chart aged pretty well
The premise was that the bear had already ended or was close to coming to an end. But that does not mean we would be heading straight for a new ATH. In fact, that will probably happen in 2025 at the earliest. Let's revisit the chart for a moment:
There is strong support from the orange trend line that sent price uupwards as the resistance was also broken on the weekly chart. I therefore speculated that price was heading for the second blue resistance trend line somewhere at 23k. With bitcoin now already being at 21k, there is not much room left and I am fairly certain we will get there. But the important question to ask here is: will this movement be sustainable? In other words, has the bottom of the market occurred or are we still heading for a lower low? Let's zoom into the chart a bit:
The upward movement was quite elevated with 7 days of green (basically 9). Normally Bitcoin heads lower again after such a rally, but the target is clear: the blue trend line on the top at around 23k. I would be surprised if we wouldn't reach it at least for a brief moment.
There are 2 obvious scenarios: The green would have a breakout to the top and head higher still; the red one would implement a retest of around 17k. The real test would then still come: can BTC establish a higher low? If so, I would say the bear market is over and bottomed out in November of last year.
When we zoom out again, we see the next target. A continued rally would mean that we would enter the spring months with an upward movement (a pattern that has often occurred) and price intersect the next resistance trend line at around 34k. Should this happen, I am sure that BTC would head for a bigger correction towards the orange support again.
As a general reminder: Please keep in mind that none of this is official investment advice! Crypto trading entails a great deal of risk; never spend money that you can't afford to lose!
Check out the Love The Clouds Community if you share the love for clouds!