Bitcoin Analysis: $8000 reached, what's next?
|Dear traders,
The trading analysis from last time has performed exactly as planned. The price of Bitcoin hesitated for a bit before extending the rally.
Price action traders were targeting the 8,000 level, which has been reached. Where is price going from here?
Bitcoin Analysis
In the image above, I have shown the 4-hour chart of the BTCUSD.
It looks like price has just touched the psychological level at 8,000. This level coincides with a previous high, as well. I have outlined in the red square the resistance zone that was formed on the 7th of November.
What can possibly happen from here?
Scenario 1
The first potential scenario is to see the price breaking out of the 8,000 level. To see that happen, we will need more bullish news or a clear price action setup to indicate the willingness of traders to go long.
Scenario 2
A second hypothetical scenario is to see the price rejecting the 8,000 level and forming a bearish pattern. If such a price action setup confirms my expectations, then we might see the price dropping down to the major support level at 5,600.
I would not be surprised to see even a larger drop if price rejects the 8,000 level.
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