This Pattern Is NOT Valid on Bitcoin Today!
Bitcoin Price Prediction 2023 – Bitcoin News Today
Bitcoin’s current trading pattern has deviated from expectations, showing no signs of validity. In this article, we will analyze the recent price movements and provide a prediction for Bitcoin in 2023. Stay informed with the latest Bitcoin news!
Bitcoin’s Trading Behavior
Over the past few hours, Bitcoin has remained relatively stable, trading slightly above the previous day’s high. By observing the CVD indicator, we can see the emergence of a potential bullish divergence, indicating increased selling pressure compared to a few hours ago. However, it’s important to note that Bitcoin has formed a new high or low, suggesting potential absorption taking place.
The Inverse Head and Shoulders Pattern
Some retail traders have identified a possible inverse Head and Shoulders pattern forming, with the neckline around the $27,350 area. It is crucial to pay attention to this pattern as neglecting it can be risky when considering long or buying positions. If Bitcoin breaks out above the neckline, caution is advised. In this article, we will provide short or sell setups, along with stop-loss levels and lower price targets.
Analyzing the Price Action
Bitcoin’s current bullishness should not be misconstrued as a strong indication for significantly higher price targets. Retail traders observing the price action might notice a left shoulder forming, indicating a potential higher low. However, it is essential to remain cautious and not assume extreme bullishness without confirming a breakout above the previous highs. We hope to witness Bitcoin surpassing its previous highs, but several factors need consideration.
Key Levels and Analysis
Examining the semi-futures chart, we can see a close at $27,320, suggesting the formation of a new semi gap. Additionally, there is a liquidity level near this range, coinciding with our previous high. Furthermore, aligning with our weekly pivot points, the weekly pivot hovers slightly above the previous high. This level becomes critical for potential buying or long positions.
Fibonacci Retracement and Impulsive Wave Analysis
Considering the Fibonacci retracement from the swing high to the swing low, the 0.5 Fibonacci retracement aligns closely with our liquidity level. If Bitcoin surpasses this level, the golden Fibonacci ratio at $27,700 becomes relevant. Regarding the impulsive wave analysis, the current price action appears corrective, possibly indicating the formation of the second impulsive wave. To consider short or sell positions, it is crucial to set the stop-loss above the previous high.
Weekly Resistance and Channel Analysis
A significant area of resistance to monitor is the weekly high in the term timeframe. Aligning this with our daily level, we can place our weekly level at the same range. While not yet confirmed, this area holds importance for potential reactions and trade decisions. Applying the descending channel analysis, we can see that breaking above this resistance could indicate a bullish trend, while respecting the channel suggests a bearish bias.
Crypto Fear and Greed Index
The current Crypto Fear and Greed Index shows neutral levels. However, if Bitcoin completes its five-wave structure towards the downside, it is likely to transition into fear territory. It’s important to note that until the completion of the fifth wave, anticipating higher prices or considering long positions might be premature.
Technical Analysis and
Technical Analysis and Conclusion
Examining the ascending channel and ascending diagonal on the Bitcoin chart, it is evident that Bitcoin is currently attempting to break below these levels, acting as resistance. While some argue that the logarithmic chart still shows Bitcoin within the channel, it is prudent to analyze the non-logarithmic chart for a clearer perspective. With the stock market also approaching a significant level of resistance, it is advisable to approach buying or long positions with caution.
Considering the Fibonacci retracement levels, including the golden Fibonacci ratio and the 0.5 Fibonacci retracement, it is essential to set alerts at these specific levels. Additionally, closely monitoring the reaction at the liquidity level, the weekly high timeframe resistance, and the potential formation of a descending channel is crucial for trading decisions.
In summary, the recent price action of Bitcoin indicates a deviation from the expected pattern, suggesting caution for long positions. Short or sell positions can be considered with appropriate stop-loss levels. It is important to remain updated with the latest news and analysis to make informed trading decisions in the dynamic Bitcoin market.
Remember to stay informed and trade responsibly.