As a seasoned analyst with over two decades of experience in the financial markets, I find myself intrigued by Bitcoin‘s current battle at key resistance levels. Having witnessed numerous market cycles and trends, I can’t help but notice the parallels between the Bitcoin rally and some traditional asset classes I’ve encountered in my career.
Bitcoin’s recent surge to over $97,000 mirrors the rapid ascent of tech stocks during the dot-com bubble, while its subsequent cooling down brings to mind the infamous “tulip mania” of the 17th century. Yet, just like those historical examples, Bitcoin continues to captivate investors and speculators alike with its extraordinary potential for growth.
On the one hand, I am cautious about the short-term outlook, as the stochastic RSI suggests a possible pullback, and the 4-hour timeframes show a high volume node that could potentially act as resistance. However, in the long run, I believe Bitcoin’s fundamentals remain robust, and any dip should be seen as an opportunity to accumulate more of this digital gold.
In terms of technical analysis, I agree with SuperBro’s assessment of the falling wedge breakout, but I share Roman’s concerns about the maxed stoch RSI and low volume pump. As a wise trader once said, “Markets are never wrong; it’s the traders who are wrong.” It seems that some traders might be getting overly excited too early in this case.
Lastly, I find myself intrigued by BitQuant’s theory of an upcoming dip due to market overexuberance. As someone who has called several market inflection points during Bitcoin’s last price cycle, his analysis is worth taking seriously. But let me remind you of the old adage: “Buy the rumor, sell the news.” When the dip comes, as BitQuant predicts, I hope investors don’t fall for it and instead choose to buy, not sell.
To lighten the mood, I cannot help but recall a classic joke from the world of finance: Why did the stockbroker cross the road? To get to the other side of Wall Street, of course! In this case, Bitcoin is leading us across the digital divide, and it will be fascinating to see where it takes us next.
On the opening of Wall Street on January 3, Bitcoin (BTC) persisted with its attempt to break through a significant resistance point, as concerns about another potential drop in its price lingered.
Bitcoin battles failed Christmas trendlines
Upon analysis of data from CryptoMoon Markets Pro and TradingView, I observed that as the U.S. trading session commenced, the BTC/USD pair surpassed the $97,000 mark.
As a cryptocurrency investor, I’ve seen Bitcoin surge impressively at the beginning of the yearly chart and find solid ground at around $96,000. Now, my focus is on its attempt to regain the 50-day Simple Moving Average (SMA).
In my experience as a crypto investor, I’ve noticed that the 50-day Simple Moving Average (SMA) had been acting as a strong support level for more than two months, holding the Bitcoin price up. Regrettably, towards the end of December, the Bitcoin price dipped below this crucial level.
In simpler terms, “SuperBro” praised the excellent execution on the price breakout from a descending triangle formation (falling wedge) in their recent analysis on stock X.
“Careful not to get aggressive with longs into potential resistance, now we need to reclaim the 20 and 50 SMA and flip these back to support.”
On various social media platforms, it was speculated that the trend line might act as a base of support, enabling Bitcoin’s ongoing upward momentum – a momentum that had started to slow down last month.
On short timeframes, however, popular trader Roman had a word of caution for the BTC bulls.
As a crypto investor, I find myself reflecting that perhaps some of us might be jumping the gun a tad, given my analysis based on 4-hour charts today.
“We’ve got a low volume pump with maxed stoch RSI. Generally means we come down a bit.”
Roman mentioned the Stochastic Relative Strength Index (RSI), which was higher than the “overbought” level of 70.
In a recent update, fellow trader Dan from Crypto Trades mentioned an additional potential barrier for price movement – the 200-day Simple Moving Average (SMA) on the 4-hour timeframe.
In addition, the short-term price movements were influenced by another version, called the 200-period Exponential Moving Average (EMA).
Or:
The 200-period EMA, which is its equivalent, also had an impact on the short-term price fluctuations.
He informed his X followers that they were trading near a significant point of high trading volume. This means that the majority of trades happen between those specific price ranges. Typically, the price tends to flow more smoothly once it manages to break free from such a heavily traded area.
“The 4H 200MA is guarding that breaking on the top side. The 4H 200EMA below is offering support. I want to see this break above $98K+ to get the party started and start the run back to the all time highs. $95K is an important level to hold in the short term.”
Analyst: Upcoming BTC price dip is for buying
According to CryptoMoon’s latest report, several analysts believe that Bitcoin’s price may experience a more significant drop before its upward trend continues again.
One of the individuals involved is analyst BitQuant, who managed to predict several turning points in Bitcoin’s previous pricing trend.
Currently, BitQuant incorporates social media signals within a hypothesis suggesting a potential market correction, driven by excessive enthusiasm.
In a portion of his recent post, he cautioned, “As we delve deeper, it’s going to become widespread. Be wary, don’t get fooled by it.
“When the dip comes, you should buy, not sell.”
Last month, BitQuant suggested that the near-term BTC price floor could come at near $80,000.
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2025-01-03 18:38