Let’s examine the insights shared by our Technical Analyst at UseTheBitcoin as he walks us through his personal trading approach and observations on the crypto market.
Bitcoin (BTC) Market Update
Bitcoin is currently trading around the $66,000–$67,000 level. If you’ve been following the charts closely, you’ll notice that Bitcoin recently faced a rejection at $69,000. This has created some downward pressure, with the market now searching for a new support zone.
In this analysis, we’ll break down the possible levels Bitcoin might revisit before resuming its next move up.
First, let’s discuss the support and resistance levels. As mentioned earlier, Bitcoin is currently hovering just below $67,000. The $69,000 level has proven to be a strong resistance that Bitcoin struggled to break through, but if we look lower, we can see potential support forming around $64,000. Why $64,000? There are a few reasons.
One of the key reasons is that Bitcoin has created a Fair Value Gap in this area. For those unfamiliar with the term, a Fair Value Gap is essentially a price gap that hasn’t been revisited by the market yet. Think of it as a magnet that attracts the price back to that level to fill the gap. The $64,000 area could be a magnet, drawing Bitcoin back to this level before resuming its upward momentum.
This makes $64,000 a vital zone to watch if Bitcoin retraces further. If the price drops back down to fill that gap, traders could have a good buying opportunity.
But what about now? Should you buy Bitcoin at the current price? Well, here’s where things get interesting. Even though Bitcoin is trading just below $67,000, this is still a solid level to consider entering the market, especially if you believe in the longer-term bullish trend. However, it’s important to prepare for a possible pullback to 64k.
Now, let’s move on to the indicators. The RSI is currently around 58, which is relatively neutral. It’s neither overbought nor oversold, so there’s room for movement in both directions. This tells us that Bitcoin isn’t in an extreme condition right now, and we could see it bounce either way, depending on market momentum.
Next, we have the MACD. We’re seeing some bullish momentum, but the lines are still close together, which means the trend could shift quickly. It’s not a strong confirmation of an upward move yet, but it’s something to keep an eye on as we monitor Bitcoin’s next move.
So, what’s the best action if you’re looking to trade Bitcoin right now? Here’s a simple plan that you might want to consider.
First, you could enter the market at the current price, around $66,000–$67,000. This allows you to have a position if Bitcoin continues its upward trend and breaks through that $69,000 resistance. But at the same time, you want to have a backup plan. Set another buy order around $64,000 at the Fair Value Gap.
This way, if Bitcoin pulls back to fill the gap, you can buy at a lower price and take advantage of that dip. It’s a strategy that allows you to profit from an upward move and a possible retracement.
If Bitcoin breaks through $69,000, it could push toward $70,000 and beyond, potentially setting new highs. But if it pulls back, you’re still positioned to buy at a discounted price.
Final Thoughts
In summary, Bitcoin is currently trading just below $67,000 after a rejection of $69,000. The next significant support level to watch is around $64,000, where the Fair Value Gap lies. This area could be a magnet for Bitcoin’s price if we see a correction.
For traders, the best strategy might be to buy at the current price while setting another buy order at $64,000. This way, you’re prepared for both outcomes, whether Bitcoin continues upward or pulls back before its next move.
For more in-depth technical analysis like this one, make sure to subscribe and hit the notification bell on UseTheBitcoin’s YouTube channel. We post daily videos covering the crypto markets, so don’t miss out!
