As noted earlier, BTCUSD has almost returned to the previously broken level of 74,000, which is apparently to start forming new multi-month support.
Considering all previous chart formations, the pair’s price is likely to move within a wide downward channel until it has firmly consolidated in the range of $60,000–70,000 per bitcoin. The event should follow a cool-down in news sentiment that was driven by the wild excitement about Bitcoin's growth in November-December last year. It has already been more than two months since Bitcoin updated its all-time high. Moreover, the top was forming within the consolidation phase before a downward break, which resulted in the outburst of energy accumulated by the bearish correction. During the correction, crypto traders might have gone through all the stages of grief and experienced denial, anger, bargaining, depression, and acceptance of a bearish reversal. Once the power fuelling the acceptance of bearish sentiments runs out, BTCUSD will start moving in the opposite directions, towards another growth cycle.
It is better to start purchasing BTCUSD from the lower boundary of the future support area, from $60,000 per bitcoin. It will provide a trader with the best risk to reward ratio. However, it should be kept in mind that bitcoin will reach this level approximately only by July-August. The lowest target of a future upward move will be the update of the all-time high at $110,000 per bitcoin, after which the prices may go up to the range of 125,000–130,000.
On the fundamental level, such growth could be driven by strong deterioration in the geopolitical and economic situation in the world, as cryptocurrencies, along with precious metals, are a safe haven from risk.
The overall recommendation is to buy BTCUSD when it reaches $60,000 per token.
Profits should be taken at the level of 110,000. A Stop loss could be set at the level of 50,000.
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.
