- MACD lines moved far from the signal level, and it tells us about the overbought market
- the price is not far from 40 000$ round number, which can become a solid resistance
- if the market gives us a reversal candlestick or chart patterns at this level, it will be a solid bearish setup.
The market will correct the price. Probably it will be even a deep correction toward 20 000$. Why?
Because big players have to fix their profit. It makes not much sense to stay with a floating profit. The profit must be fixed, and it means that big players will start to close their long positions step by step. When and where will they do it? It can be done at 40 000$ or at 50 000$, at any round number. But it will be done. After that, we will see the correction movement toward the key support levels. If closing long positions is combined with short traders from bears and panic sell of from newbie traders, we will be able to see 20 000$.
The correction movement in the daily and weekly timeframes will allow smart traders to start buying again, and it will push the price upward.
Bitcoin , like any market, can be irrational, but it doesn't mean that we have to ignore the logic and principles of proper trading. It means that we have to be disciplined and not to buy at the top. We must plan our trades better, wait for solid bullish setups, and buy the asset at a good price. Source: DLavrov
#Analysis
#BTC
#8_Jan_2021
- the price is not far from 40 000$ round number, which can become a solid resistance
- if the market gives us a reversal candlestick or chart patterns at this level, it will be a solid bearish setup.
The market will correct the price. Probably it will be even a deep correction toward 20 000$. Why?
Because big players have to fix their profit. It makes not much sense to stay with a floating profit. The profit must be fixed, and it means that big players will start to close their long positions step by step. When and where will they do it? It can be done at 40 000$ or at 50 000$, at any round number. But it will be done. After that, we will see the correction movement toward the key support levels. If closing long positions is combined with short traders from bears and panic sell of from newbie traders, we will be able to see 20 000$.
The correction movement in the daily and weekly timeframes will allow smart traders to start buying again, and it will push the price upward.
Bitcoin , like any market, can be irrational, but it doesn't mean that we have to ignore the logic and principles of proper trading. It means that we have to be disciplined and not to buy at the top. We must plan our trades better, wait for solid bullish setups, and buy the asset at a good price. Source: DLavrov
#Analysis
#BTC
#8_Jan_2021