Bitcoin has been gaining in value over the last week hovering within a tight band The price is bouncing around between $108,000 to $112,000, with no clear direction. Multiple rejections have occurred at $112,000 and the technical analysis shows pressure around The 200-day moving medians are displayed on the 4-hour chart.
Noteworthy, an analysis of Bitcoin by Daan crypto shows Bitcoin to be a very strong currency. is at risk of a breakdown Below $100,000 but the bulls can still stage a recovery rally.
Expert Warns of Sweep In Monthly Lows
In his latest post on Daan Crypto Trades on the social media site X noted that Bitcoin’s price was indecisive at present and is moving towards a bounce off the lows of the month. The movement of the price is based upon the chart with a 4-hour timeframe, where the Bitcoin was rejected last week at the 200MA/EMA.
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On the 4-hour chart, you can see that Bitcoin is trading within a range defined since August 25. Equal lows form a base of weakness around $107,000 with liquidity just below. A stop-hunt is a likely next step.
The analyst said that such a move would be likely to have negative consequences. open up a bearish case There is a general feeling of fear in the market that Bitcoin will eventually fall below the $100,000 level.
Analysts also noted the price range between $103,001 and $105,001 as the support level Where buyers can enter. He said that this would be an ideal place to enter swing positions should the Bitcoin rate fall below $107,000.
Conditions for A Bullish Recover
According to this analysis, Bitcoin Bulls are able to stop any decline below $100,000 if they hold above $105,000 or $103,000. Daan lays out a base bearish case but also describes a roadmap for the bulls.
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First, strength would have to be above $115,000 in order for it to break the range low of August, which had turned into resistance during the first week of august. The invalidation of the forecast would be a break and close over $115,000 any short-term bearish momentum.
He also suggested that a rapid liquidity grab under the monthly lows of $107,000 followed by a return to the $107,000 or $112,000 level would be the best scenario. This second scenario, according to the analyst could lead to a one-to two-month rally in the direction of an uptrend through November and October.
The analyst stated that he will be on the sidelines for the time being, except in the case of short-term gains. Bitcoin was trading at $111 733 as of the writing. This is an increase of 0.7% over the last 24 hours.
Chart from Tradingview.com, image from Pixabay
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Source: www.newsbtc.com
