Is Bitcoin BTC About to Crash?

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Welcome back, everyone!

It's been almost a year since my last post and even that post wasn't about the markets.

It's time to change that going forward.

So what better way to come back than to talk cryptocurrencies. In this case, Bitcoin.

If you look at the weekly chart, Bitcoin has gone bananas since its March 2020 low of around 3,800.


That is nearly a 1,000% return in under a year! Phew...

But is the rally done? Are there no buyers left? Are the people that bought recently going to be stuck holding the bag if this huge rally collapses? Great questions. Let's dig deeper.

The way I dig deeper is to simply look at lower timeframe charts and perform technical analysis.


Now the daily chart is clearly showing a triangle pattern, which is a trading range or consolidation of price action. What does that mean?

It means supply and demand are fairly balanced around the 35,500 level. The trendlines that form a triangle are the key support and resistance lines to watch going forward for any change in this balance.

Therefore, according to both the daily and weekly charts, Bitcoin has provided no evidence of a top or imminent collapse, only that supply and demand are balanced right now.

We want to look for breakouts from this area now so we can be ready to react in the direction Bitcoin ultimately decides to go: moon or crater.

Once again, welcome back! I hope to do more posts like these on a wide variety of crypto, stocks, futures, and anything tradeable really.

Cheers

Jory


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