🅱️ (₿) Bitcoin Buy Opportunity Developing? (Support Levels)

2023年1月25日

Unfortunately, Bitcoin is not as weak as Ethereum and thus prices still remain above EMA10, giving the bulls the upper-hand short, mid- and long-term.

Mid- and long-term because we also have prices trading above EMA50/100 and MA200.

The potential for a retrace is still here though and thus a buy opportunity for bullish traders.

If a retrace shows up, we can buy-in (new positions), accumulate (long-term holders) and reload (active trades that secured profits).

We are lacking weakness but let's map the support levels nonetheless.

On a drop, the first level to be tested on the BTCUSD cryptocurrency trading pair would be EMA10 or $21,892.
Bitcoin has been trading above this indicator since the 3rd of January when it turned bullish.

After EMA10 the next strong support lies at EMA21 together with the 0.382 Fib. retracement level based on the last bullish breakout.

The next level is very important and that's MA200 because it is a long-term resistance now turned support.
It matches the 0.5 Fib. retracement level at $19,610 - $19,419.

Note: There is no retrace yet and any retrace can be cut short.
But retraces and corrections are necessary for sustained, healthy growth, specially after a 50%+ bullish jump.

Let's continue.

EMA50 and EMA100 works next as support but if Bitcoin were to move below MA200 and 0.5 Fib. retracement, it would cut straight through these two and wick at the 0.618 Fib. retracement golden ratio of the last bullish wave.

Here is how it works:

• If the bulls are strong, any potential retrace would end before 0.382 on the chart (levels mentioned above). The bulls have already shown massive strength.
  
  
• If the bears jump in strong, then the 0.5 Fib. retracement comes into play.
  
  
• A nice prolonged retrace would test 0.618 Fib. easily before prices resume up.
  
  
• The 0.786 level can also be tested but this would either mean that the bulls are weak or the whales are doing the classic liquidity hunt.
  

Any trading above the 21-November 2022 at $15,487 we consider STRONGLY bullish.

If this level breaks, think long-term.

The bias remains strongly bullish.

Namaste.
P.S. Any correction can be cut short. The market is bound to add some major volatility to shakeout some weak-hands... Keep that in mind.