Bitcoin, the king of crypto, has experienced a tumultuous start to 2024. But what’s next for the volatile asset? Will it soar to new heights or descend further into the bear market abyss? In this video, Nick delves into the technical analysis, using various timeframes and indicators to paint a clearer picture.
Lower Lows or Higher Highs on the 1-Hour Chart?
Nick starts by zooming in on the 1-hour timeframe, identifying a potential downside move to fill a “fair value gap.” However, Bitcoin defied expectations, bouncing back after hitting resistance at the 50 EMA and taking out more gaps. Now perched at the crucial 200 EMA, could this signal an upward trajectory?
Resistance Ahead: Will Bulls Charge Through?
Caution flags rise as the analysis predicts resistance at both the 50 EMA and 50 SMA. Pushing past this range might prove challenging. Fibonacci retracement and smart money concepts are employed to identify potential price targets and support/resistance zones.
Volatility Reigns Supreme: Buckle Up!
Expect a bumpy ride, warns Nick. Market makers are hungry for liquidity, and volatility is their playground. Stochastic RSIs and bullish divergence offer a glimmer of hope for an upward bounce, but the daily and weekly timeframes paint a contrasting picture.
Zooming Out: A Broader Perspective
On the daily chart, support lies at the 50 EMA, with a potential move downwards towards 30k. The weekly chart paints a bleaker picture, highlighting resistance levels and a potential bearish scenario if Bitcoin dips below 30k. RSI and stochastic RSI trends on both timeframes lean towards the possibility of further decline.
Cautious Optimism: Holding Above 30k is Key
The overall analysis encourages aiming for Bitcoin to hold above the 30k mark, acknowledging the ever-present threat of market crashes and potential Federal Reserve policy pivots.
Remember: Patience and a keen awareness of market dynamics are crucial for navigating the ever-shifting landscape of Bitcoin. This analysis provides insights, but the future remains uncertain. Always conduct your own research and understand the inherent risks before making any investment decisions.