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Bitcoin Price Analysis: A Potential Correction After Recent Surge

BITCOIN: Is $40,000 the NEXT Target?
BITCOIN: Is $40,000 the NEXT Target?

In the latest episode of Cheeky Crypto, host Nick delves into the recent price action of Bitcoin (BTC), providing valuable insights for traders and investors.

Recent Price Action and Corrective Move

Bitcoin’s price has exhibited a recent surge, reaching a fifth wave high point of around 35,984 USDT. However, following this surge, the price underwent a corrective move, which Nick suggests could be a WXYXZ pattern rather than an impulsive one.

Oversold Conditions and Potential Long Positions

Nick highlights that Bitcoin is currently in an oversold area, making it a potential opportunity for a long position. He identifies possible support levels on the hourly chart, including the 50 EMA and 50 SMA.

Daily Chart Analysis and CME Gap

Examining the daily chart, Nick observes a reversal pattern with higher highs and higher lows, indicating a potential correction. He also points out a CME gap at the 20,000 to 21,000 range, which could act as a key support area for Bitcoin.

Expected Correction and Historical Precedents

Nick anticipates a 40% reduction in Bitcoin’s price, which he characterizes as a common and healthy correction. He supports this expectation by citing historical data showing that 40% retracements have been common after significant surges in Bitcoin’s price.

Current Outlook and Invitation to Speculate

Nick expresses his desire for a bullish market and hopes that Bitcoin’s price won’t decline significantly. However, he acknowledges the possibility of a move down in the near future and acknowledges that various real-world factors could be catalysts for a price drop. He invites viewers to speculate on these factors in the comments section.

Call to Action

Nick encourages viewers to share their thoughts and opinions on the video’s content and appreciates likes to support the channel. He also invites new viewers to subscribe and stay updated with his latest analyses.

Key Takeaways

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