On Wednesday, Bitcoin dropped under 27.500 zone support, maintaining intact the falling trend line that started in mid-April. However, this drop lacked continuation to 26k support, instead, reversed yesterday, leaving a Piercing Line pattern (close to engulfing the previous candle) on our daily chart. Although at this moment we need more confirmation, there are good perspectives for bulls. Confirmation for a new leg up comes with a daily close above the 27.500-27.600 zone and in such an instance, 30k is exposed. More important, though, is the fact that a break above this level would mark 26k as a new higher low in the sequence started in Nov-Dec 2022 and could lead to a new local high above the previous one. As an alternative scenario, a drop under 26k would expose 21k In conclusion, I'm bullish BTC, but with the price in no man's land at this moment, I wait for confirmation.
Kommentar
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Bitcoin is trading in the middle of 62k-27.5k range. The bullish idea, with confirmation above 27.500 remains intact. However, at this moment sellers seems to have control
The recent price action in Bitcoin has indeed been intriguing, with the drop below the 27,500 support zone but a subsequent reversal and the formation of a Piercing Line pattern on the daily chart. This pattern suggests a potential bullish outlook, but confirmation is still needed.
I'm curious to know what specific indicators or signals you are looking for to confirm the new leg up and a potential move towards the 30,000 level. Additionally, could you elaborate on the significance of 26,000 as a new higher low in the sequence and its potential impact on the formation of a new local high?
Mihai_Iacob
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@Arman2002, thanks for the question. First, 27500 is confluence resistance, falling trend line and horizontal level. If we break, there is a high chance of up continuation. A break would call for 30k zone and, this will make 26k higher low considering 15500 and 21k.
Arman2002
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@Mihai_Iacob, Thank you for answer, what other key levels or factors would you be monitoring to confirm an upward continuation for Bitcoin if it breaks the 27500 resistance?
Mihai_Iacob
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@Arman2002, i usually use LTC price action as leading indicator, and LTC broke up and Total for confirmation. For Total i will post analysis tomorrow
Arman2002
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@Mihai_Iacob, Looking forward to your analysis on Total tomorrow. Keep up the good work!
I'm curious to know what specific indicators or signals you are looking for to confirm the new leg up and a potential move towards the 30,000 level. Additionally, could you elaborate on the significance of 26,000 as a new higher low in the sequence and its potential impact on the formation of a new local high?