Technicals that Can Make BTC Go $25k | Be Prepared
It is well known that the larger the time frame the better the predictions from technical analysis. Well this one pattern has been forming since 2017 and on a successful break it can lead to a continuous rally to $25k and please don’t go long on a new all time high. There are much better ways to manage your portfolio when you miss out on crypto rallies which I will discuss in the end.
BTC technical analysis
Ever heard of a multiple bottom with a descending triangle reversal? Wedge? Pennant? Their hybrid? Well when this pattern happens it causes a 90 degree curve due to short covering and longs being added at once. It will test triangles edge at $19k ATH (all time high) and 85% of the time breaks it. The triangle height in this pattern is around $16,700 which can be gained at minimum from this breakout. The increasing volume indicates more accumulation is happening which makes the $3k-$4k zone a strong support.
There are three scenarios A, B, C and wish we could know which path BTC would take. You should be prepared for all. Path B would be the strongest breakout.
Well If It’s headed to $25k why not buy at any point?
Remember scenario C can also happen which can lead to a free fall in BTC. But if you are entering at dips around $3k-$5k you will be able to average out your price to $1500-$1900 in case scenario C happens. After the free fall when a retest of $3k happens you can still exit with profit.
If $3k-6k never comes?
Maybe it comes to $7k and bounces back or never comes below $9k and breaks out right now. Generating positions is a long term thing because you never know when will the rally come. You should be buying on dips and selling some on highs and then buying back again. This increases your net BTC balance overtime. Managing this is tough that too in a volatile 24x7 market. Well that is where technology comes in and can be used for fast execution & 24x7 monitoring. There are some tools you can use for crypto portfolio management like Botsfolio.
Missed 2017 BTC rally or bought at the top?
If you used a strong BTC trading bot like Botsfolio when BTC was $17.k, you would have made profit in a bear market. We backtested as to how would your portfolio would have performed if you bought $2000 worth of BTC 2 years ago (Hodler), vs if you let Botsfolio handle and invest the same money. Interestingly while the Hodler account would be worth close to $1500 today, Botsfolio portfolio for the same initial amount would be close to $3500 today. That means even if you put money into crypto at ATH (all time high price) using Botsfolio, you would still be up 75% today.
