Bitcoin Surpasses $87,000 Following Healthy Correction to $74,000
Bitcoin has surpassed $87,000 after a correction that brought prices to $74,000 earlier this month. Analyst Doctor Profit provided insights on price action and future expectations.
Critical Price Levels for BTC
- Healthy correction occurred as anticipated, with Bitcoin dropping to the $70,000-$74,000 range.
- A potential severe downturn could lead Bitcoin to the $50,000-$60,000 range.
- The "Golden Line" at $77,000 is a critical threshold; staying above it suggests a reduced risk of significant crashes.
- Resistance is observed at the "Hammer Line"; historical trends show rejection upon approaching this level.
Potential Breakout Scenarios
- If Bitcoin breaks above the Hammer Line, plans include closing a short position from $90,000 and holding a spot position from $77,000.
- If it dips to $77,000, additional purchases are planned with limit orders set.
- Short-term trading likely within $77,000-$85,200 range; recent spike indicates temporary break above the Golden Line.
- Upcoming factors may trigger bullish sentiment: US-China agreements, potential Federal Reserve rate cuts, and increased M2 liquidity.
- Mid to long-term outlook favors breaking above the Hammer Line over falling below the Golden Line.
- Trading in the zone between these lines is labeled a "forbidden zone." A breakout above the Hammer Line signals renewed upward momentum, while a drop below the Golden Line suggests a shift in market sentiment.
Currently, Bitcoin trades just above $87,200, reflecting a nearly 4% increase over the past week.
