Bitcoin Analysis: Shakeout or Rally? Let's Read The Chart!

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The Crypto market is buzzing with speculations right now! Some believe that the recent fall in Bitcoin was nothing more than a shakeout, and a massive rally is just around the corner. Meanwhile, there’s news floating around that the federal government has sold a huge chunk of BTC and plans to sell even more.

But here’s the thing: financial markets don’t run on speculations, and news usually hits the market after the action is already done. So, let’s forget the noise and get straight to the business of reading what the chart is telling us.

Before we dive into the analysis, ask yourself this: What kind of trader are you? When you invested in the market, did you have a plan? Was it a short-term play (swing trade) or a long-term investment?

For Long-Term Investors

If you’re a long-term investor, there’s no need to worry. The trend for Bitcoin is still bullish on the daily time frame. What we’re seeing now is just a corrective move, and this is how price behaves—it moves in waves. Every dip is an opportunity.

The next key buying zone for long-term investors lies between 70500 - 74000, a level that hasn’t been tested since the breakout on 6th Nov 2024. So, be patient and let the price come to you.

For Short-Term Investors

If you’re a short-term investor, this analysis is specifically for you.

Currently, Bitcoin’s price has been moving consistently upward over the last few hours. It has even broken out of the last lower high. However, let’s not get carried away just yet.

There are multiple resistance zones above, and it won’t be an easy ride for the buyers. These zones offer an opportunity for sellers who missed the chance to short from the top.

The real turning point for buyers will be the 0.618 Fibonacci level. Once this level breaks and the price sustains above it, we might see buyers gaining confidence to push the price higher.

Also, don’t forget to check out my detailed analysis of the Ethereum chart.