It's all about supply and demand. No matter what way you look at it, the Bitcoin market will move to the price that it is being demanded, in time. It may not be today, it may not be tomorrow, but Bitcoin could return to the $25K level at some point in the future. Are you ready to buy the dip? Let's see what the charts are saying...
Taking a look at the Bitcoin Daily chart, we can see that BTC has been finding a hard ceiling at $30-31K and is struggling to get above and stay above that level. That is because that price zone is showing up as a pretty major supply zone, which is where bigger money seems to be taking some profits off the table by selling positions they have been holding from probably around the $20K levels for below.
When Bitcoin become stagnant and consolidates, the hyperactive crypto community becomes bored and starts in with the negative sentiments. This is the kind of thing the big money, or smart money as some call them, wants to happen. That means that they can slowly take some profits, and start to push the price down, which scares retail into dumping their coins at lower prices, where the big money is waiting to scoop it up at those discounted prices. It's tale as old as time.
Our closest demand zone, which is a level where there have been a lot of buyers before, and also a place where there could be stuck traders from being trapped before, are waiting to get their hands on some cheaper coins, or to get back into a position to save their trades, is sitting around $25K.
It is extremely possible for the Bitcoin price to drop back down to that demand zone, but, there is also the possibility that we will never see those levels again.
Zooming into the 4HR timeframe, we can see that the price is hitting a local demand zone and bouncing off of it. This is giving a bit of a bullish sentiment, especially when looking at the consolidation of the volume and the momentum.
This indicates that the price could be coiling up for some real action, one way or the other. If we keep this higher low momentum, then we can see a run back to the the 30K but that is a strong level that we will have to break to get back to and break the 31K level, which is what we need to get to some serious upward action.
If we break this support level on the 4HR and head to the downside, I will be looking for that $25-26K level to go long.
What are your thoughts on the future of the Bitcoin price? What trades are you planning, or are you just stacking sats?
Let's discuss in the comments!
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Disclaimer: The information in this trade journal is for educational purposes only and should not be considered financial advice. Please consult with a qualified financial advisor before making any investment decisions.
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