We Asked Santa to look at Bitcoin Futures
According to data from Coinglass, Bitcoin saw a significant rally during Christmas week in previous halving years. For example, in 2020, Bitcoin surged by 25.63% during the 52nd week. Similarly, in 2016, it gained 11.25%, and in 2012, it recorded another impressive double-digit increase.
Bitcoin futures are currently confined within a well-defined range of $92,000 to $98,000. This range is critical because it's framed by key levels that have historically influenced price action. These levels act as potential turning points, where buying or selling pressure can lead to reversals or breakouts.
$97,350: A significant level where sellers may enter the market, potentially causing a price reversal.$98,020: Close to $97,350, this strengthens the resistance zone. A decisive break above this confluence zone could signal further upward momentum.$102,000: If Bitcoin breaks above $98,000, this level is likely to be the next major obstacle.$105,070: In an extended uptrend, this level could attract profit-taking and potentially trigger a reversal.
Crucial Support Levels (Potential for Price to Hold or Bounce):
$92,450: This level has recently been tested and held, making it a crucial short-term support.$91,720: This level represents a potential buying zone where downward pressure could be absorbed.$90,170: A key institutional support level with strong historical significance. Expect substantial buying interest around this price.Bitcoin Futures Trading Strategies:
Range Trading: Capitalize on price fluctuations within the $92,000 to $98,000 range. Buy near support and sell near resistance.Breakout Trading: Upside Breakout: A convincing break above $98,020 could signal a move towards $102,000 or higher.Downside Breakout: A break below $92,450 could lead to declines towards $91,720 and $90,170.Patience is Key: Don't chase price movements. Wait for Bitcoin to reach key levels and observe market reaction before entering trades.Volume Confirmation: Look for increased volume to confirm breakouts or reversals.Risk Management: Always use stop-loss orders to limit potential losses.
The Holiday Season and Bitcoin:
By understanding these key levels, employing sound technical analysis principles, and considering the potential impact of the holiday season, Bitcoin futures traders can gain a significant edge in this volatile market. Remember to manage your risk and trade responsibly.. Always trade bitcoin at your own risk only.
This article was written by Itai Levitan at www.forexlive.com. Read More Details
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