Technical analysis of Bitcoin evaluates the crypto king by assessing previous prices and volume. Technical analysts don’t analyze a security’s inherent worth, but instead utilize charts and other tools to uncover trends.
Technical analysis also uses patterns to predict future price changes. These patterns may be bullish, bearish, or neutral, indicating a price increase, decrease, or consolidation. Head-and-shoulders pattern, triangles, flags and pennants are typical chart patterns.
Many times, in technical analysis we’ve also got ‘key levels’, or key price levels. Important price level is a chart point where the price has found support or resistance and/or it is expected, in a probability of more than 50% (and hardly more than 85%), that these price points will expedite new and inrcreased market participation. On the mechanical under the hood, there are buy and sell orders that are typically waiting above and below key levels. So, these levels may be used to determine entry and exit locations for trading.
In the follow technical analysis video, I analyze Bitcoin technically, and mention important key price levels:
- A daily candle closing below $15500 would start a new chapter for the bears (more decline for BTCUSD) but in the meantime…
- The decentralized digital currency seems to be at an interesting spot for early speculative traders or buyers that can be well paid later in terms of the high reward vs. risk ratio.
- The video shows trade ideas with 2.6 and over 6 reward vs. risk ratios for new bulls.
- Bitcoin above $18255 would mark another “confirmation” for the bull case.
Last but not least, after a terrible 2022 for Bitcoin, there are still strong market influencers that may think that BTC is done with the dip and may be interested to start a new year with a new increased price sentiment. While this is not technical analysis, it is also something to keep an eye out for.
Trade BTCUSD at your own risk and do visit ForexLive.com for additional perspectives.
Do you think Bitcoin will be higher than $16500 on Dec 31, 2023? Please comment below.