Bitcoin still on track to $35k+

Good day Hiveians!

Join me in analyzing the crypto markets!

 

Over 2 weeks ago we had a normal correction

Many were freaking out about Bitcoin's signs of "weakness" when price went ~12% down over several days. But anyone who has been studying the markets for a longer period of course knows that this is perfectly normal. In fact, if we wouldn't be seeing these kinds of movements I would be highly cautious as markets never move just up or down on any scale.

Some days ago Bitcoin's price went lower again after a considerable upward squeeze and it did in fact bounce off of an important support. So far price has held above it, but it has to hold for the overall momentum to stay alive.

We are pretty much exactly where we were about 2 weeks ago: price at a somewhat critical level that needs to hold for another push upwards. Overall the bigger picture looks like this:

This chart is several weeks old, but I would argue that we are still on track to the highs outlined here. We only have to shift the path outline a bit to the right, since price hasn't moved quite as much upward as expected. Here is an update:

Essentially you can see very good how price has been rejected 2 times at the dotted trend line. This actually is a big resistance since it is a trend line with 10 years of support that has now turned into a resistance. But I remain positive that price will overcome this hurdle.

Something very similar happened back in 2019, a pattern which I am basing this analysis on:

There was also a trend line that turned into a resistance and price got rejected 2 times, but then broke higher (see ellipse). Moreover, the "U" shaped recovery can be seen which could very well happen again for this year.

There are now two important support for immediate price action: the thinner and thicker blue line seen here:

Should the first one fail, there is still a good chance that the second one will hold. Although this would be much less bullish. If so, we could see a triple rejection (BTC often moves in threes):

 

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As a general reminder: Please keep in mind that none of this is official investment advice! Crypto trading entails a great deal of risk; never spend money that you can't afford to lose!

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