INSUBCONTINENT EXCLUSIVE:
Key point:Bitcoin (BTC) pulled back after hitting a new all-time high of $123,218 on Monday, indicating profit-booking at higher levels
The correction seems to be technical in nature, as the underlying demand remains strong
Bitfinex analysts said in a markets report on Monday that demand from Shrimp (new monthly supply of about 13,400 BTC since the April 2024
out.BTC is witnessing a correction that could tug the price to the neckline of the inverse head-and-shoulders pattern near $113,000.BTC/USDT
Source: Cointelegraph/TradingViewThe upsloping 20-day exponential moving average (EMA) ($112,390) and the relative strength index (RSI) near
the overbought zone signal an advantage to buyers
If the price rebounds off the 20-day EMA, the bulls will try to push the BTC/USDT pair above $123,218
If they manage to do that, the pair could rally toward the pattern target of $150,000.Contrarily, a break and close below the 20-day EMA
suggests weakening momentum
That may delay the start of the next leg of the up move
BTC price rally toward $160KBTC/USDT 4-hour chart
Source: Cointelegraph/TradingViewThe pair broke below the 20-EMA on the 4-hour chart, indicating weakness in the short term
Buyers are trying to start a relief rally, which may face selling at the 20-EMA
defend the zone between the neckline and $110,530
If the price rebounds off the support zone and breaks above the 20-EMA, it suggests that the bulls are on a comeback
The pair may then climb to $123,218.This positive view will be invalidated in the near term if the price breaks below $110,530
That may sink the pair to $108,000 and thereafter to $105,000
The deeper the correction, the longer it is likely to take for the next leg of the uptrend to begin.This article does not contain investment
advice or recommendations
Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
