Daily Price Outlook
- Bitcoin struggles at a crucial resistance level of $28,300, with technical indicators pointing towards an overbought market, suggesting a potential price correction.
- If Bitcoin can’t break through $28,300, shorting opportunities may arise, with targets set at $27,500 and even $27,000.
- A successful breach and close above $28,300 might motivate investors to go long, aiming for resistance levels at $29,000 and potentially $29,450.
In technical analysis, Bitcoin faces a significant hurdle at the $28,300 mark, emphasized by the four-hour ‘double tap’ pattern. The frequent candle closures below this point hint at buyer fatigue, suggesting a potential shift in market control to sellers.
Key technical indicators such as RSI and MACD are in the overbought zone, with RSI near 76.75 and MACD displaying extended histograms around 171. The wide gap between the 50-day EMA (approximately $27,000) and Bitcoin’s current market price (close to $28,000) suggests the market is overbought, signaling a potential price correction.
Investors might get a chance to short Bitcoin below $28,300, targeting $27,500 or even $27,000, if Bitcoin fails to surpass this level. Alternatively, breaking and closing above $28,300 could push investors to go long, aiming first for $29,000, then potentially higher near $29,450.
BTC/USD Price Chart – Source: Tradingview
BTC/USD - Trade Idea
Entry Price – Buy Above 27700
Stop Loss – 27000
Take Profit – 29000
Risk to Reward – 1 : 1.85
Profit & Loss Per Standard Lot = +$1300/ -$700
Profit & Loss Per Micro Lot = +$130/ -$70
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