Bitcoin takes new recent highs as the market is waiting on the next major move for Bitcoin.
On Friday we saw a 3% move down for Bitcoin and that makes people question whether we will continue up from here even more.
What is next for the markets? The charts might have something to say.
BITCOIN
BTC reached $31 000 – the top of the parallel channel that we had already mapped out. The price is currently located at the Consolidation Area. It was expected for the price to find selling pressure there, so the price ended up going 3% down. Since the slight knock of BTC short sellers have taken profit and bulls are trying to push the price higher.
In the short-term interval $29 300 – 29 000 for BTC is a zone where if reached is desirable for buying positions. This is the area where the 2021 Yearly Open is stationed at and also the 21MA on a Daily interval will have the possibility to catch up. This will be the moment where bulls have to show strength in order to keep the uptrend sentiment.
It will take a significant volume to overcome the parallel channel but BTC is volatile. The Major Resistance area $31 300 – $32 000 is still valid and we can see the BTC price get “trapped” below it. This essentially means that we can see the price record new highs but trigger the selling positions in the area. Either way a move to the upside around the area will be a preferable profit-taking possibility for people with long positions.
Overall, BTC looks weakened but euphoria and volatility can surprise the ones that are looking to open positions. Trading accordingly to areas is likely to prevent losses rather than opening positions with the aim of not missing the next possible move. Expecting to see volatility in the weekend.
SOLANA
Spot on with the resistance area for SOL. The price managed to steadily climb up to $25.50 before selling pressure prevailed. Similarly to BTC, SOL bulls are also trying to keep the momentum up.
SOL still remains a currency that is recording moves based on fundamental news. Earlier this Friday we saw the price lose all its gain from the last 24H before bouncing mere 4%.
Oddly enough, the orders in the market for SOL have decreased significantly. Much less positions are being put for execution and that makes the price more probable to a move without supported thesis.
The plan for SOL is the same:
- The area between $23.70 – $23.30 is a desired one for late buyers to enter. If reached it will be a fancied long position. This is where SOL will allegedly drop to the previous high levels and that can be interpreted as a buying signal.
- If the price reaches a new high between $25.80 – $26.80 bulls will have to show immense support in order for the price to continue higher. Thus, the area is preferable to move along with the market makers and flip short on SOL.
Link for the BTC chart exclusively HERE!