Bitcoin May Either Bang Up or Bust Down: Which One?

Bitcoin May Either Bang Up or Bust Down: Which One?

Disclaimer: This article is not financial advice. The author is not a financial advisor and this article was not paid for.

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Foreword

As we suspected yesterday, the price of Bitcoin ended up racing up toward $6.5k.

#TargetReached

That always feels good to say.

Let’s see what’s going on with the price action right now at the time of writing.

Bitcoin Price Analysis

https://www.tradingview.com/x/umRZKr5y/

As you can see in the picture above, this is a potential feast or famine situation for Bitcoin here.

It could either bust upward above this overhead resistance at $6.5k and then hit $6.9k, or it could blow back downward toward $6.2k to stay within this trading range for a while longer.

The purpose of this article will be to access whether that will or won’t happen and make an educated guess, followed by smart portfolio management to hedge so that we’re profitable in either scenario.

First, though —

What is a Trading Range?

This happens a lot more than you might imagine, actually.

Random picture from the internet ^ (Google Images)

Now, take a look at Bitcoin in live time:

https://www.tradingview.com/x/v6gYQ6Dp/

The practice of ‘exploiting’ projects that are trading in a range is called range trading.

Divergence on the Daily Chart for RSI

https://www.tradingview.com/x/v1ASRkxe/

Let’s identify where the divergence is coming from specifically for those that aren’t entirely familiar with that term:

The golden rectangle represents said divergence on the $BTC chart.

Exponential Moving Averages

https://www.tradingview.com/x/vqlxytFj/

As you can see above, each one of the EMA indicators on this chart symbolizes a resistance point that Bitcoin will have to eventually reach.

Potential Flat Top Pattern Forming on the H4

https://www.tradingview.com/x/NCFmuzez/

Conclusion

It’s hard to state now, but it a breakout above $6.5k is definitely more than possible.

However, it is not guaranteed_, and there is no way that the author would reocmmend for anyone to stand in the line of fire ready to catch that bullet if they are not entirely ready on their own._

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