Bitcoin Threatening to Breakout Into A New All-Time High
After making its record high of 7898 over a week ago, the BTC/USD pair plunged into a higher low of 5511. Since then, the market has rallied and is currently threatening to create a new all-time high.
However, a pullback is in order to sustain the ascent. Technical indicators support this view and show that the pair is not yet ready to make the next move up. The ideal situation is for the market to retreat to the levels of 6972 – 6781. This slight correction enables buyers at the level of 5511 to take profits and in turn create a new batch of bulls who would most likely hold onto their positions.
Knowing the market’s history, however, there’s a very good chance that the bulls become even more aggressive and push the market higher. If this is the case, wait for the market to break the resistance at 7474 with volume of at least 170 million to validate the move. This will push the pair to 9067.
Summary of Strategy
Buy: Correction from 6972 – 6781 OR breakout at 7474 with volume of 170 million
Support: 6972 and 6781
Stop: If the market breaches 6781 as next reliable support is 6312
Disclaimer: The writer owns bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.
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