Table of Contents
Introduction
In recent developments, Bitcoin appears to be forming an ascending triangle, finding crucial support from the MA20 indicator currently situated at the $43,030 mark. This has prompted strategic long orders placement near the MA20 region and an additional set around $42,200 for potential wick hunting.
Technical Strategy
The decision to place long orders is rooted in the belief that Bitcoin’s movement has been notably strong in recent weeks, with MA20 proving to be a reliable support at $43,030. The strongest resistance is identified at the $44,400 region, suggesting a sideways trend between these key levels. The anticipation is a breakout leading towards a target of $45,300 in the coming days.
Confirmation and Caution
The validity of this strategy is contingent on Bitcoin maintaining a daily close above MA20. Any closure below this level would invalidate the approach. It’s essential to note that MA20 is considered a dependable indicator during the pre-bull phase, emphasizing its significance in the current analysis.
Long-Term Outlook
Looking at the bigger picture, the primary target is set at $47,000-$48,000. Despite skepticism surrounding ETF (Exchange-Traded Fund) news being labeled a potential trap, the analysis suggests a contrary viewpoint. While acknowledging the possibility of a trap leading to mass liquidations, the timing is crucial. The belief is that ETF news of this magnitude wouldn’t halt at $40,000; instead, it might propel Bitcoin to a new all-time high before any significant sell-off.
FOMO and Institutional Play
Disagreeing with those claiming an imminent dump before reaching an all-time high, the argument is grounded in the absence of on-chain proof for such assertions. The lack of maximal hype in the media and the existence of euphoria in the pre-bull phase supports the theory of maximizing FOMO (Fear of Missing Out). The notion is that significant players aim to induce maximum FOMO, pushing Bitcoin to new heights, possibly exceeding $100,000, before orchestrating a controlled sell-off.
Conclusion and Strategy
In light of these observations, the strategy involves holding a spot position in anticipation of a new all-time high next year. The broader objective is to capitalize on the potential FOMO-driven surge facilitated by ETF news. The focus is on the timing and the expectation of institutional players cashing out well above the $100,000 mark rather than prematurely at $40,000.
Market Calendar
It’s crucial to note that for the upcoming week, the market calendar remains relatively quiet due to holidays, suggesting that major movements might be subdued in the short term.
Disclaimer: This analysis is speculative and should not be considered financial advice. It is imperative to conduct thorough research and consult with financial professionals before making investment decisions.