Bitcoin has formed a textbook reverse pattern. A lot of traders view this as a setup, and indeed many times it is, but it is not a guarantee! I have said this in a previous idea, but I will say it again – if you are trading this market, I think you’re crazy. The vast majority of traders will end up with less Sats than they would if they had just bought and held until we get closer to the end of the macro cycle. I know everyone wants to think that they can beat the market, but why give yourself the extra stress durinng this massive bull run? Keep stacking Sats and enjoy the ride!
Ok, sermon over – let’s get to business. I see two possibilities over the next week:
1. The reverse pattern continues and we break the resistance at the neckline (about $59k) leading us to a new all time high in the next day or two
2. We get rejected one more time at the neckline ($59k) and then do one more bounce off of the long-term trendline at about $55k before moving up.
In either scenario, the only way I see BTC going for a while is up. I have us at $72k by the third week in April. This consolidation around the $57-$59k is VERY healthy and a good sign that this bull is nowhere near done! In fact, there is a good case to be made that this consolidation has created a new floor in the event of a major correction, like what has happened in previous cycles.
*Not financial advice. Buy / Sell / Trade at your own risk.