The crypto rollercoaster is back, especially that Bitcoin prices reached USD 40,000 and breached it slightly higher. Crypto traders were waiting for this specific price action. In fact, those guys are swing trading BTC prices between 30K and 40K and making good profits. After today’s 40K price breach, what should investors do? Short-sell at current prices or buy in anticipation of a 50K price reach?
Bitcoin Price Analysis – 40K price reached Successfullly
After an extended bearish trend, Bitcoin managed to consolidate around USD 35,000. Many traders benefited from this consolidation, as it usually signals a sideways trend. This is the perfect opportunity for day traders and swing traders to reduce their long-term holdings and switch to active trading. To explain this further, the trend becomes delimited by two areas: a buy area and a sell area.
Whenever prices reach the low area, traders directly buy the crypto. On the other hand, whenever prices reach a higher area, traders sell the crypto. For the specific case of today’s Bitcoin price-action, traders are buying whenever prices approach the 30K area and sell whenever prices reach the 40K area This is very apparent in figure 1 below, where we can see the green area representing a strong buy, and the red area representing a strong sell.
Will Bitcoin Price continue going up?
If we closely look at Bitcoin’s price, we can clearly deduce in figure 1 that Bitcoin’s price is due for a correction. This is especially true because BTC price reached a very strong resistance area. This resistance comes at the same time as the psychological price of 40K.
Having said that, Bitcoin’s price should adjust lower if prices were to continue upward. In figure 2, when plotting the Fibonacci retracement, we can expect prices to adjust towards the USD 37,000 area at the first stage. After this retracement, prices should pick up again and breach the 40K price again higher.
The Crypto Market at a Glance
In the past 24 hours, the crypto market was seen up in tandem with Bitcoin’s rise. This comes after several good news, such as El Salvador officially recognizing Bitcoin as a legal tender along with other countries. Also, the king of manipulation Elon Musk tweeted again about his past actions. He claimed that Tesla company is looking at accepting Bitcoins again after miners become 50% more efficient.
1- Bitcoin (BTC) : + 5.82 %
2- Ether (ETH) : + 4.34 %
3- Tether (USDT) : 0 %
4- Binance Coin (BNB): + 3.63 %
5- Cardano (ADA) : + 3.68 %
6- Dogecoin (DOGE) : + 1.38 %
7- Ripple (XRP) : + 2.86 %
8- USD Coin (USDC) : + 0 %
9- Polkadot (DOT): + 16.01 %
10- Uniswap (UNI) : + 6.65 %
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Rudy Fares