After Bitcoin failed to stay above $48,000, it fell back to $43,000 levels.
We stated that the risks should be mitigated by taking profits between $46,000 and $48,000 while the price was still at $40,000.
Those who profit from these levels are now wondering if it is necessary to make a new entry.
So Should You Buy New From This Level?
In Bitcoin, we observe that the moving averages work quite well as support and resistance. Therefore, we will examine the current price movements according to the important averages.
The price is currently trading between daily ma 20 ($44739) and daily ma 50 and 100 ($41600).
As resistance, $44739 can be followed as support at $41600. As both ma50 and ma100 cross the $41600 region, a reaction can be expected from this level.
Since the current price is between 3 important averages, new purchases at these levels will be risky. In the meantime, if the price rises, maybe some opportunities have been missed? Yes, but the key is to manage risk. If everyone could seize every opportunity in the market, investors would all be rich.
For this reason, major supports should be followed by leaving the paradox of “look, I did not buy, look, I did not get it”.
We’re in the Weekly Critical Zone
We have stated above the levels to follow for day trading. But the weekly chart tells us that there is a great danger.
With the recent declines, the price went below the weekly ma20 and 50 again. As long as we stay below these levels, the selling pressure will continue.
We will need to see weekly closes above $45500 in Bitcoin for price and altcoins to relax.
We have seen that there are upward and downward fake-outs around these two averages before (See: December 2021).
For this reason, we will look for stronger signals that the current price range is risky for new entry, waiving some profit rate if necessary, and that the uptrend will continue.
So No Ascension Data?
Technically there is. On the weekly chart we can see a nice W formation forming and testing the neckline of it. A weekly close above $43333 is sufficient to maintain this support.
The work of this formation may allow us to see better rises in the coming weeks.
If there is a rise at this point, the dangers we mentioned above will be eliminated.
Considering that the difference is 5%, we think that it would be healthier to wait for the market to make its move rather than taking risks for such a small profit difference.
*Not Investment Advice.