A strong rally of bitcoin, or at least one of the ascending waves, has ended. After a rapid jump amid market’s optimistic expectations related to President-elect Donald Trump's initiatives, the cryptocurrency entered a horizontal range and is likely aimed at downward correction to previously broken highs.
From the technical point of view, a curious moment occurred as the price was overcoming the psychological level of $100 000 per bitcoin. It froze a bit before reaching the level, as the market participants probably expected strong resistance. The resistance was most likely there, but the price carefully sawed through it and exceeded the level of 100 000.
After that, the market participants believed the resistance was overcome and the way further up was open. And as it usually happens in such cases, the market reversed and moved against the majority, which had been holding long positions. The growth could not be fuelled, and buyer demand could not be satisfied.
The historical chart of bitcoin price shows that every upside break ended with a correction to previously broken levels. Based on this, the current situation can be assumed to also result in a correction. Technical price target of this correction is $75 000 per bitcoin. It is likely that a broad sideways market for BTCUSD started to form in mid-December, which will be followed by a downward break.
Another pattern can be noticed in addition to corrections. The period of price accumulation in the range before returning to the level, which was broken through, is about 5–10 times as long as the impulse movement of the price growth. Thus, the price should not be expected to return to 75 000 before the summer of 2025.
The overall recommendation is to sell BTCUSD.
Profits should be taken at the level of 75 000. A Stop loss could be set at the level of 120 000.
The volume of the opened position should be set in such a way that the value of a possible loss, fixed with the help of a protective Stop loss order, is no more than 1% of your deposit funds.
This content is for informational purposes only and is not intended to be investing advice.
