Good news for the bulls: the golden crossover is here. Should we wait for a correction, or buy bitcoin (BTC) right away?
After Bitcoin formed a bullish pattern in the past few months, it surged and broke several resistance levels to hit a local high of $24,300 last week. This momentum culminated in a 50% rally in five weeks.
Meanwhile, BTC has seen a series of rejections since the price hit $23k on Jan 21, followed by $23.8k and others.
There is no doubt that Bitcoin has gained momentum and has performed impressively since the start of the year. In fact, its dominance has put the global market capitalization back above $1 trillion. The current setup looks exactly like the previous bull run. History is repeating itself.
The Bullish Cross of Gold is Here
On the daily scale the appearance of a bullish golden cross can be seen. This is a relevant signal that often signals the start of a very strong uptrend. So a bigger advantage for bitcoin (BTC) can be considered in the medium term. The closest targets are the psychological levels of $25,000 and $30,000.
However, one should not neglect the RSI, which is starting to break out of the overbought territory. Effectively, this shows that the bulls are losing steam. This could lead bitcoin (BTC) into a corrective move. In this case, it could be that the price may be going back to the $20,000 level. Therefore, the following is the ideal level to place a buy order:
Entry point: $20,000
Stop Loss: $19,000
Goal 1: $25,000
Goal 2: $30,000
There is still hope for a rise if Bitcoin can rally well above $23k. You would need to claim the $23,340 hourly dip level as resistance, followed by $23,800 and $24,255. The resistance levels of $24,678 and $25,200 are next if the price rises.
Key resistance levels: $23,340, $23,800, $24,255
Key Support Levels: $22,306, $21,552, $20,650
Cash price: $22,860
Trend: Bullish
Volatility: High
Bitcoin (BTC): Benefiting from a Possible Short-Term Correction
On the short-term scale, there could be a bearish scenario. That is because the daily RSI is starting to break out of the overbought territory. Therefore, a drop in bitcoin (BTC) could be seen in the coming days.
In such case, the $23,840 level looks like an interesting entry point. This is the 23.6% Fib level if the range between the high and the low of the previous week is considered. Therefore, the most likely scenario could be that the price rises to this level, before falling to $20,000.
As a side note, the Bitcoin price has managed to hold at $23k in the past week despite high-impact news from the US Federal Reserve. However, the bulls have shown signs of weakening with a possible reversal in the coming weeks.
By Audy Castaneda
