The price of Bitcoin is facing a key resistance point this week. The bullish trend we’ve seen since the beginning of the year could come to an end, or be slingshot to new highs.
BTC price is right up against the all time high set on March 24th. If BTC breaks above this key resistance, we’re likely to have I wild (and possible parabolic) bull market scenario.
On the heels of the Bitcoin halving on April 19th, this kind of break out is just what Bitcoin needs to recreate a price jump comparable to 2017 or 2021.
It’s not a complete riches or ruin though. If BTC gets rejected from the top of the current price channel (shown below), it will likely move down to test either the two moving averages around $65,000 (shown in blue and green), which should offer strong support, or the bottom of the price channel (In White) around the $57,000 mark.
The likelihood of dramatic gains is increased by the bullish flag pattern that’s formed by this price channel which is one of the strongest bullish patterns.
Even though I’m still very bullish on BTC, holders of Bitcoin might consider selling or taking some profit and setting stop losses above the channel in case of a breakout. This mitigates the risk of the price going down to test the bottom of the trend, while allowing for massive profits if the price breaks above the flag pattern.
By doing this you’ll miss out on a few percent of profit along the way but it will give the opportunity to rebuy at lower price points.
For those looking to maximize this strategy: This is where OCO orders come in handy. It would allow you to set a buy order if the price goes above the resistance or if it comes down to meet the aforementioned supports.
Disclaimer: This is not financial advise! What you do with your own money is up to you.
Myriad Media 