As noted in one of our earlier forecasts, Bitcoin's strong rally, which had begun in November last year, exhausted itself by the start of the new year.
The cryptocurrency, after a strong surge driven by optimistic market expectations tied to President-elect Donald Trump's initiatives, entered a horizontal trading range and is now poised for a downward correction toward previously broken resistance levels.
As previously mentioned, the price approached the key psychological level of 100,000 per Bitcoin. It hesitated slightly below this level, likely due to market participants anticipating strong resistance. Indeed, resistance was present, and the price cautiously tested this level before gradually breaking above the $100,000 mark.
Following this breakout, the market assumed that resistance had been overcome and that the path upward was clear. However, as often happens in such scenarios, the market reversed, moving against the majority of traders who held long positions. The momentum for growth faded, leaving buyers without sufficient support to sustain the upward movement.
A review of Bitcoin's historical price chart reveals that all previous upward breakouts were followed by corrections to previously broken levels. The technical target for the current correction is the $75,000 level per Bitcoin.
Since mid-December, a broad sideways (flat) market for BTCUSD began to form, which has now started to break down. This breakdown has become evident over the past three days.
The target remains unchanged at the $75,000 level.
Final Recommendation: Sell BTCUSD.
Take profit level: $75,000
Stop-loss level: $109,000
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.
