Investing in Bitcoin can be a challenge due to its market volatility and price fluctuations. However, a crypto analyst named ‘Stockmoney Lizards’ has identified crucial price levels that investors should monitor for potential buying opportunities.
According to the analyst, Bitcoin’s recent price actions suggest a classic 5-wave uptrend followed by an ABC correction with an overarching wave B. An ABC correction is a pattern within the Elliott Wave Theory that reflects a three-wave correction and helps in identifying a trend continuation.
The analyst pointed out that Wave B ended at the Value Area High (VAH) around $69,885, which historically acted as a resistance level for Bitcoin. Additionally, the $66,745 price point was highlighted as another crucial resistance level, represented by a Point Of Control (POC) on the BTC price chart.
On the other hand, the 1.618 Fibonacci extension level for Bitcoin is considered a potential support area for a new uptrend. This level coincides with the 0.5 Fibonacci retracement level and the Value Area Low (VAL), all of which are significant support levels for the cryptocurrency.
The analyst suggested that the support area between $61,800 and $62,300 is an important buying level to watch out for. He emphasized that if Bitcoin breaks below $61,800, a further decline to test the 2.618 Fibonacci extension at $56,800 should be expected.
Despite the current decline in Bitcoin’s price, the crypto analyst remains bullish on the short term and mid term outlook for the pioneer cryptocurrency. At the time of writing, Bitcoin is trading at $61,594, reflecting a 4.21% decline in the last 24 hours, according to CoinMarketCap.
Other analysts also share a relatively bullish outlook on Bitcoin’s price, predicting potential rallies to new all-time highs. A crypto analyst known as ‘TOBTC’ mentioned that despite the recent rejection at the $70,000 resistance, a potential breakout is expected by September.
It is crucial for investors to closely monitor key price levels and patterns in Bitcoin’s price movements to identify optimal buying opportunities. By analyzing resistance and support levels, as well as considering different analysts’ perspectives, investors can make informed decisions when it comes to investing in the cryptocurrency market.