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Bitcoin recently broke through a crucial horizontal range and hit a significant key level, prompting discussions on the ongoing liquidations and the next potential price targets. In this Bitcoin price prediction update, we’ll delve into the recent market movements, the impact of liquidations, and explore possible trading scenarios.
Breaking the Range and Liquidations
Bitcoin experienced a notable upward push following the release of the previous video. This surge not only surpassed previous highs but also avoided significant liquidity grabs, leading to missed short opportunities. The increase in volume during the upside movement suggests a considerable number of short positions getting liquidated.
On the 1-hourly timeframe, we observed multiple instances of liquidations during bullish candles, totaling around 27 million shorts. While the volume uptick may signal a bearish indication, caution is advised. The previous resistance at $43,400 has now transformed into a support level, requiring a downside break for confirmation before considering new short positions.
Key Support and Resistance Levels
The $43,400 support level holds paramount importance as it represents both the top of the horizontal range and aligns with previous highs. Additionally, measuring the volume of the range indicates that the value area high corresponds closely to the previous highs and lows around $43,300.
A downside break below the value area could signify a return to the horizontal range, indicating a potential correction. Conversely, if the support holds, Bitcoin could aim for a new higher high, targeting liquidity levels or the next higher timeframe resistance at $45,500.
Ethereum Trading Ideas
Switching briefly to Ethereum, it faces challenges against Bitcoin, with the Ethereum/Bitcoin chart showing a potential trading opportunity. Monitoring the Ethereum/Bitcoin chart for a break below the previous low could present a buying opportunity, with implications for the Ethereum/USD chart. Ethereum/USD needs to break a diagonal resistance for a bullish outlook.
Potential Trading Strategies for Bitcoin
Considering the current market conditions, two potential short scenarios emerge. A more aggressive approach involves shorting near the current levels, with a tight stop loss above the previous high. Alternatively, a conservative strategy awaits confirmation with acceptance back into the horizontal range, albeit with a less favorable risk-to-reward ratio.
Possible Price Targets and Risk Management
For those opting for immediate shorts, the first target is the new daily level at $42,300. However, if waiting for confirmation, the bottom of the horizontal range, aligned with the golden Fibonacci ratio and the point of control, becomes a crucial support area at $40,200. Subsequent support levels include additional daily levels and value area lows.
Conclusion and Trade Plan
In conclusion, the current market suggests cautious optimism. While an immediate long might be risky, potential short opportunities exist. Traders are encouraged to assess risk tolerance and choose between aggressive or conservative strategies. Remember to use appropriate risk management measures to navigate the dynamic Bitcoin market.
Note: The provided information is not financial advice, and readers should conduct their own research before making investment decisions.
