Excluding economic factors and focusing solely on the technical analysis of the BTCUSD pair, a few interesting observations can be made.
There are some unclosed price gaps above current levels, particularly in the $98,000–$100,000 and $120,000–$121,000 ranges. Similar gaps are clearly seen below: between $66,000 and $72,000, $43,000 and $46,000, $28,000 and $30,000, $12,000 and $15,000. All of them could serve as the pair’s next technical target. It should be borne in mind that the market is subject to sharp, periodic corrections, often retracing 80–90% of its initial movement. This is particularly true in the case of speculative instruments, such as cryptocurrencies. It's like a cleansing process that flushes out excess sellers or buyers to restore balance. After a series of long squeezes in October and November, the BTC market got a second wind for a new growth wave, having removed a significant number of bulls. However, traders' pessimism did not last long and soon faded away, pushing Bitcoin toward another bubble. Thus, a stronger correction is expected in order to provide a long-lasting vaccine against overheated conditions. The aforementioned price ranges may serve as targets.
Under this scenario, the correction may aim for $66,000. A protective Stop loss order could be placed at $94,900.
The overall recommendation is to sell BTCUSD, with Take profit at $66,000 and Stop loss at $94,900.
The volume of the open position should be calculated so that the potential loss (protected by a Stop Loss order) does not exceed 1% of your deposit. If your account balance does not allow opening a position of this size, it is better to avoid entering the market on this signal and wait for other trade options that meet low-risk criteria.
This content is for informational purposes only and is not intended to be investing advice.
