Bitcoin Reaction: Key Levels and Triggers for Buying and Selling
Bitcoin continues to capture the attention of investors therefore understanding the key levels and triggers for buying and selling becomes crucial. This detailed analysis caters to both those who bought BTC at lower levels and those waiting on the sidelines.
Key Levels
1. Sell Zone: $71,470 — $73,250
2. Range-Mid S/R: $65,300 — $66,500
3. Buy Zone 1: $60,800 — $59,000
4. Buy Zone 2: $57,256 — $55,888
5. 1D Buyside FVG: $62,250 — $60,050
6. 1D 200EMA Support: $58,807
Current Situation
Bitcoin is currently hovering around the mid-range S/R level ($65,300 — $66,500). The longer BTC consolidates above this level, the higher the likelihood of a squeeze towards all-time high (ATH) levels in the sell zone. Notably, BTC has already closed three consecutive days above this level, indicating a bullish trend.
Trading Scenarios
Bullish Scenario
Bitcoin is currently showing signs of going higher but if a squeeze happens higher from the range-mid towards the $72k area, expect significant sell pressure within this zone without an immediate break to new ATHs. This presents a good opportunity for taking profits or initiating short-term scalps.
Bearish Scenario
Should $BTC close below the range-mid S/R level, it may offer a buying opportunity at lower levels. Buy Zone 1 ($60,800 — $59,000) is a key area supported by the 1D 200EMA, 1D FVG, and 1D demand. A tap into this zone could provide an excellent scalp opportunity.
Below this, Buy Zone 2 ($57,256 — $55,888) is critical as it aligns with the macro diagonal trend support from 2019. In my opinion, losing this support could signal a prolonged bearish period .
Ideal Scenario
The optimal scenario for Bitcoin would be a squeeze into the sell zone followed by a period of consolidation between the sell zone and the range-mid. This would set the stage for a potential breakout towards the $100k mark and beyond.
While the market currently shows bullish tendencies, it’s essential to remain prepared for both upward and downward movements. The strategic use of the identified key levels will help traders and investors make informed decisions in the dynamic crypto market.
Disclaimer. The views and opinions expressed by Lennox Gitonga are for informational purposes only and do not constitute financial, investment, or other advice. I strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.
