Bitcoin: Pullback from 12000USD and What's Next?
In the previous post about Bitcoin I wrote that the nearest target for buyers would be 12000USD. You can read the details in this post.
The price reached 12000USD, and we saw a strong pullback from that resistance level. The price reached 106000USD and moved back toward 11000USD. What does it mean for us?
Such behavior could be a reason of closing long positions. If we talk about big players, 12000USD is a good profit target. Amateur traders, who tried to join the upward movement at 12000USD, could start closing their long positions when the market moved against them. The same goes for traders who did not use stop orders, and their long positions were closed by crypto exchanges. I'm talking about traders, who like margin trading without knowing how to manage risk and money properly.
All these trades were short, and they pushed the price downward.
What's next? During the next several days we have to watch for the price action. RSI confirmed the price reversal. MACD histogram supports a possible downward movement. Based on these bearish signals, we can expect the sideways or a downward movement to 10500USD - 10000USD support zone. It will be good for the buyers as this zone will be able to provide good reversal signals for buying. Also, we have to take into consideration the downward movement to SMAs. Reversal signals from these trend lines will be good for buying as well.
It is good that the price bounced from 12000USD. We have a good opportunity to see a correction. After this correction, the buyers will be able to continue developing the uptrend with a new target at 14000USD.
The weekly timeframe is bullish, and I think this target will be reached. Of course, if we don't have fundamental factors, which will be able to break the bullish structure and push the price below the key support levels.
Disclaimer!
This post does not provide financial advice. It is for educational purposes only! You can use the information from the post to make your own trading plan for the market. But you must do your own research and use it as the priority. Trading is risky, and it is not suitable for everyone. Only you can be responsible for your trading.
The price reached 12000USD, and we saw a strong pullback from that resistance level. The price reached 106000USD and moved back toward 11000USD. What does it mean for us?
Such behavior could be a reason of closing long positions. If we talk about big players, 12000USD is a good profit target. Amateur traders, who tried to join the upward movement at 12000USD, could start closing their long positions when the market moved against them. The same goes for traders who did not use stop orders, and their long positions were closed by crypto exchanges. I'm talking about traders, who like margin trading without knowing how to manage risk and money properly.
All these trades were short, and they pushed the price downward.
What's next? During the next several days we have to watch for the price action. RSI confirmed the price reversal. MACD histogram supports a possible downward movement. Based on these bearish signals, we can expect the sideways or a downward movement to 10500USD - 10000USD support zone. It will be good for the buyers as this zone will be able to provide good reversal signals for buying. Also, we have to take into consideration the downward movement to SMAs. Reversal signals from these trend lines will be good for buying as well.
It is good that the price bounced from 12000USD. We have a good opportunity to see a correction. After this correction, the buyers will be able to continue developing the uptrend with a new target at 14000USD.
The weekly timeframe is bullish, and I think this target will be reached. Of course, if we don't have fundamental factors, which will be able to break the bullish structure and push the price below the key support levels.
Disclaimer!
This post does not provide financial advice. It is for educational purposes only! You can use the information from the post to make your own trading plan for the market. But you must do your own research and use it as the priority. Trading is risky, and it is not suitable for everyone. Only you can be responsible for your trading.
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