A structure that caught my attention began to form in Bitcoin’s monthly view. It seems that it has tended to retest for the double top formation, which had previously broken down to the $16,000 level of Bitcoin.
After testing the $30,400 areas into the next week, it seems possible to face a possible pullback. We can follow our monthly support areas as $26,400 – $25,200 – $23,800 – $21,400.
It can be observed that if the breakdown of these areas occurs, the regions will be considered as S/R regions and will work as resistance.
On the other hand, there has been much positive news in the market recently that Bitcoin can reach the level of $ 30,000, while some factors limit this situation. Among them may be the banking crisis, which supported the rise of BTC by 20% in March.
In this process, where the banking crisis continues, Europe’s 2nd largest banking crisis occupies the agenda. After the crises experienced by Credit Suisse, the past few week’s decline in the shares of Deutsche Bank, Germany’s 2nd largest bank, has worried investors.
With candles showing weakness forming on the weekly Bitcoin view, we can observe a pullback to $24,700. As a long-term RSHS (reverse shoulder head shoulder pattern ) target, the $48,000 level draws attention.
$24,700 is a test area of the recently broken neckline. If that area comes and there is no serious sell pressure in weekly structures, it will continue on its way upwards with the continuity of the trend.
In the general structure, Bitcoin tries to maintain its upward trend. It is considered a buying opportunity unless there is a price below $21,400 which is then becomes a bearish zone.
If we interpret the 4-hour chart of Bitcoin, we can say the price continues in a certain range with volumeless candles due to the weekend and being in a strong resistance zone.
The breach area of the EQ region within the range where the price moves is at $27,600, closings below this level are foreshadowing the levels of $26,700.
In general terms, Bitcoin gained a good momentum before and during March, and as a result, altcoins also made serious exit opportunities. While most of the altcoins maintain their buying levels, some did not reach the sufficient level of buying due to their high prices. Considering the bull and bear cycles, it is ideal to invest in risky products with these price zones accounting for 25% of the long-term portfolio.
After MicroStrategy announced its debt to Silvergate Bank with Bitcoin, it was revealed they adopted Bitcoin as a long-term safety asset.
I’m a private trader of over 7 years, based in Istanbul.
All trading and research are my opinion, not investment advice.