Bitcoin (BTC) has broken through February’s opening price and is moving into the green for this month. Will the August summit hold?
Close to clearing the $25,200 hurdle
The queen of cryptos had an explosive day yesterday. Indeed, it achieved a rise of 10% on a one-day basis. With this rise, bitcoin (BTC) breaks through the February opening price and moves into the green. Currently, this leader in cryptos by capitalization is trading around $24,500. Its price is thus approaching an old peak never reached for 6 months. This is the August 2022 high, which was followed by a decline of over 38%. The area around $25,200 is therefore a key level, the breakout of which could be decisive.
On the daily scale, we could indeed envisage the breakout of this top. Indeed, we see that the rise of bitcoin (BTC) yesterday is accompanied by a fairly large volume. If the price breaks through the $25,200 hurdle with significant volume, it will potentially be a false breakout. In this case, one could consider a short position just above $25,200. We will therefore bet on the return of bitcoin (BTC) to $20,000. On the other hand, if the price breaks through this low volume hurdle, the price could go as high as $29,200. This is the next major hurdle for bitcoin (BTC).
A short-term long position in bitcoin (BTC)
It is likely that the price will break through the resistance at $25,200 whether it is a false breakout or a true breakout. Thus, one could consider a long position on bitcoin (BTC) in the very short term. For this, let’s go down the H1 scale.
The area below the February open looks like an interesting entry point. Indeed, the opening price aligns with half of the range of the week. In addition, a demand zone is located just below. But we will have to be careful, because the bitcoin (BTC) could retrace to the fib level 78.6%. We will therefore put our entry between the 61.8% and 78.6% levels.
Admission: $22,720
Stop: $22,000
Goal 1: $25,200
Goal 2: $26,000
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