Is Bitcoin Headed Higher or Lower?
After a significant surge in October, many are wondering if Bitcoin will continue to rise or retrace back to $30,000. Currently, Bitcoin has encountered resistance and is at the top of a channel it has been following since mid-2022.
Some analysts suggest that a retracement to $30,000 is possible, as this is where the 0.618 Fibonacci level can be found. Additionally, there is strong support from the 200-day moving average, which aligns with the 0.786 Fibonacci level.
Momentum Remains Strong
Despite the possibility of a retracement, it’s important to note that momentum is still strong for Bitcoin. Short-term Stochastic RSIs are at the bottom, while the daily, weekly, and 2-weekly indicators are still heading upwards. The monthly Stochastic RSI has even flipped back to the upside on the monthly close, indicating strong momentum moving forward.
Caution Advised Despite Upward Trend
Although Bitcoin is currently in a pennant pattern since October 24th, it’s important to respect the upward trend and consider that a break out of the flag is more likely than a downward move. However, a retracement to $30,000 could be beneficial in resetting the daily stochastic RSI.
Traders should also be aware that a deeper downside move is still possible, potentially testing Bitcoin’s base under $20,000. As long as a new low is not reached, the overall bull market price structure would remain intact.
Hot Take: Bitcoin’s Future Path
With its recent surge and strong momentum indicators, Bitcoin seems poised for further gains. However, caution should be exercised as a retracement to $30,000 is still a possibility. Traders need to closely monitor key levels and indicators to navigate the market effectively and make informed decisions.
Source: Crypto Daily
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