In this detailed analysis, we will provide you with two possible scenarios of what direction the price of bitcoin might take.
But first, let’s discuss the market overview of BTC
Market Overview :
On the daily time frame, we can see obviously that the price of bitcoin is smashing all the daily resistances by posting higher highs and lows. On the 3rd of February, the price succeeded in breaking the 51,346 USD level with a bullish candlestick which is formed of a big body. Usually, this form of candlesticks shows that buyers are controlling the price and might pushing it further to the upside. In addition, we should mention that Bitcoin is traded within a bullish channel, and most probably, a correction count might be posted soon toward the daily support.
Now, let’s have a look at the lower time frame to have an idea of how might Bitcoin move in the near term.
Long Scenario :
The first scenario which is buying the BTC is more likely to occur since the main direction of the trend is to the upside, so it is wiser to consider a buy position instead of a sell one.
On the 4-hour time, we were able to draw an ascending channel where the price is close to reach the higher end of it.
So, what we should expect next from the price of BTC?
We might see a further move to the upside toward the top of this channel, and then most probably a correction count toward the 51372 USD mark. If this level were strong enough a potential move upward will be seen to the 54867 USD level as first target, and if buyers succeed to stay in control for longer period of time, we could see the BTC reaching the 58298 USD mark, the previous all-time high.
Short Scenario :
In this part, we will discuss the least likely scenario that you might face in the coming days for BTC price. So, as we mentioned the price is trading inside a bullish channel, but what could happen next is a breakout. If a move to the downside happened where the 51372 USD mark is broken, then we should see how the price will react under it. A bearish price action is needed to consider a sell setup in this case. First a breakout, then we should wait for a re-test of the 51372 USD mark from the downside along with a bearish price action. In case this scenario is applied two levels that we should look at. First stop for the downside movement is the 47594 USD mark, and if the sellers were strong enough the price of bitcoin will be smashed and pushed to the 43746 USD mark.
Indicators Used For Our Analysis:
We rely mostly on the price action, basically we look at how the candlesticks are formed since each candlestick can give us a substantial amount of information of how most probably a price might move next.
Also, we used some trendlines (horizontal & diagonal) to be able to draw our key levels and to mention the formation of the channels.
Originally published on Daily Coin
What Is Next for Bitcoin : 58298 Or 43746 USD Level ?