BTC Continues to the Upside but remains range bound
The technical indicators we used, prompting us to issue a buy signal yesterday, remain bullish today. Today I want to recap what they were and where they point Bitcoin may be headed.
First off, let's recap the first trade we recommended for the year 2022. At 4:50 PM, EDT Yesterday’s article recommended that traders enter a long position from the current price of $40,900. After posting the recommendation, there was ample opportunity to get in this trade for over 5 hours after being published. We suggested protective stops be placed at $40,300, and we advised to exit the market if our target price of $42,500 was reached. As anticipated, the trade played out in less than one trading day. Traders who took our call earned a profit of $1,600 per Bitcoin.
The indicator that preludes to this short-term spike was the bulls' success in holding a key price area. This support consisted of three confluent studies all pointing to the area around $40,700 as a zone that we expected to see a bounce from. The three unified studies included the upper band of a compression triangle that BTC broke out of on March 18th, the 50-day moving average, and the 38% Fibonacci retracement level from our shorter data set.
We chose a day trade of sorts because Bitcoin is still trading within a defined range and our target that was hit yesterday was near the top of that trading range ($33k - $45k) and when Bitcoin will break out of this range is not yet clear. The chances that when a breakout does occur, it will be to the upside grow stronger, I would give it an 80 -90% that the break will be to higher ground at this point. So, we will be looking closely at the markets so that we can position ourselves properly either right before or right after Bitcoin trades above the long-term 61.8% Fib. level at approximately $44,500.
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