The recent days in the cryptocurrency market have inspired great optimism. In 24 hours, the price of bitcoin rose by more than $3,000 and set a new all-time record at around $23,700. This happened even faster than many analysts expected.
Now the price of bitcoinhas returned to the $23,000 level, and its movement has temporarily stopped. Now it has become much more difficult to predict further changes in the price of the first cryptocurrency than before. The fact is that for the past three years, analysts have relied on existing charts and levels of resistance and support, as well as on proven scenarios. Now when bitcoin is more expensive than ever, analyzing it has become more risky.
However, we still have some technical analysis tools, and today we will talk about the most likely scenarios.
Now we are witnessing a breakout of the “ascending triangle” pattern, which has already been repeatedly observed on the bitcoin chart.
This movement is a very good signal for the market and for the bulls in
particular, but big capital does not like many open long positions. In such
situations, there is often a "short squeeze" on stop losses and
“We can expect several waves of growth, as a result of which the price will reach $25,000 and then collapse to $20,000. This will be a good opportunity to buy an asset, which will be used by those who did not have time to do this before the explosive growth began”,— believes Alex Lebed, Head of Development at xSigma DeFi, a blockchain R&D lab launched by ZK International, a publicly-traded company (NASDAQ: ZKIN).The company recently announced the launch of a decentralized exchange for trading stablecoins.
We are less likely to see the beginning of a correction in the coming days. Then there will be no growth waves mentioned above. Similar scenario happened between 13 and 16 November this year.
However, bitcoin looks very good in the long run. First, a lot of capital is invested in the market, and there are no reversal patterns on the chart. Secondly, during price drawdowns, bitcoin is bought very quickly, and in general, price movements downward are similar to speculative manipulations. So, in general, everything looks very optimistic, and now there are no hints of a fall in bitcoin, as it was at the end of 2017.
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