BTC Long if Support Holds and Resistance is Broken

2022年3月4日

BTC after having risen to a high slightly over $44000 was rejected back down to the $41000 levels. However, BTCUSDT has currently reached a strong support level supported by several indicators reinforced by a combination of indicators and chart patterns. Firstly, BTC has reached 0.382 fib support level which is a historically sound level in terms of fib sequence numbers. Furthermore, BTC has reached a demand zone (blue rectangle, central one). Moreover, previous descending resistance line has transformed into a support level (descending red line). Likewise, BTC has touched the lower Bollinger Band which implies a high chance of a bounce back. Additionally, the RSI is reaching the oversold area and showing signs of reversal which further implies price increase of BTC. My bullish scenario of my prediction (which is also the one that I think is most likely to happen) is that BTC will bounce back and successfully reverse the downtrend that has been occurring since November last year. For this to occur BTC has to successfully break the $44000 resistance level and the sell zone surrounding this price (blue rectangle, upper one). My second scenario which is slightly bearish would occur if BTC is unable to break the previously listed resistance areas/ lines. Finally, the last example, my most bearish scenario and the most unlikely would occur if the current support will not hold and price will be sent downwards. NOTE: If price breaks the long term support line (purple line) as well as the psychological level of $30000 then this is all a false trend reversal and BTC would have confirmed a massive double top. Price would be likely to bounce to $10000 for a short period of time.