bitcoin

Bitcoin Two Scenario Movement: Will the resistance of $40,000 Break anyway?

It’s been two and half months since Tesla Broke up with Bitcoin and China Started to send loads of FUDs, and Bitcoin started to range between $30,000 to $40,000. However, it broke below $30,000 briefly during the period. By looking at the chart of Bitcoin we see resistance above $40,400 with almost 70 days of consolidation. At the H4 frame,

Bitcoin two Scenario Movement
Source: Tradingview

the last bars have a down trend with decreasing volume which is a possible sign of reversal of the current downtrend and the lower support of $38303 can act as local support, given no FUDs. If the reversal happens and the price breaks above, we have two scenarios to expect.

Bitcoin Two Scenario Movement: Scenario 1

This will be a slow and steady process where Bitcoin will strengthen its price and secure liquidity between the current support and resistance. In this case, the price will break above the resistance with a gradual pace having significant volume spikes, and move to upper psychological resistance.

Bitcoin Two Scenario Movement: Scenario 2

Scenario 2 will be a sudden pump of price, possibly with low volumes and break above the resistance. The volatility will be much higher making new highs briefly. This will, however, be a fake pump and the price will return to the level it started.

Scenario 1 is optimal to trade as it will encourage a dynamic price movement however the other scenario 2 is too dangerous to trade.

 

About mnmansha

MN Mansha is a cryptocurrency expert, trader, and content writer with extensive experience in covering everything related to digital assets — from price analysis to Blockchain disruption. Mansha authored 100+ stories for NewsBSC.com and other fintech media outlets and he's actively writing more every day. He’s particularly interested in regulatory trends around the globe that are shaping the future of digital assets.

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