Bitcoin’s position in the crypto world is indisputably crucial. As the first and most significant cryptocurrency, its market moves heavily influence the crypto landscape. Renowned crypto analyst, Kyledoops, shares insights into Bitcoin’s current market dynamics and potential short-term future trajectories.
Bitcoin’s Range Low and High
Kyle emphasizes that Bitcoin traders should vigilantly observe its market movement. Even if Bitcoin’s price dips below the $25,000 level, a quick recovery would demonstrate a swing failure pattern. This pattern indicates resilience in the face of temporary market dips and suggests that Bitcoin’s range low could be around $25,000. Conversely, the range high could be at the $34,000 to 35,000 level.
The critical factor, Kyle points out, is to anticipate multiple scenarios. Traders should be prepared for unexpected turns and have a plan for every eventuality. Essentially, trading Bitcoin requires a strategic mindset akin to a chess player.
Pullback On The Charts?
Kyle points out how the 50 and 200 Exponential Moving Averages (EMA) have acted as a resistance for Bitcoin’s price. After the ‘death cross,’ where the 50 EMA crosses below the 200 EMA, the Bitcoin price fell. If Bitcoin starts to pull back from these levels, a continuation to the downside may be expected.
He also anticipates a possible price refill around the $26,000-$26,500 level due to an imbalance in the market. This occurrence could create a sweep into that area, marking a potential buying opportunity for traders. However, if the Stochastic RSI starts to turn down, the momentum may shift to the downside.
Bitcoin was worth $27,361 at the time of writing this article.