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Jul 31, 2021
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Bitcoin Hits $40,000 Again. What’s Next?

Written by
Christopher

At $40,500 per coin, Bitcoin is on the verge of exiting the eternal range as buyers step in with conviction.

Meanwhile, a BTC mining company, aptly named Stronghold, has filed for a $100 million IPO and plans to massively expand its operations with the proceeds this year.

Let’s dig in.

BTC mining company Stronghold Digital Mining has filed for a $100 million initial public offering (IPO) with the United States Securities and Exchange Commission in order to fund a massive expansion in its operations.

Is China’s loss America’s gain?

Check out the full article here!

Bitcoin Threatens to Exit the Eternal Range

After the failed breakdown below $30,000, the stage was set for a BTC/USD rally which culminated in a short squeeze.

In last Wednesday’s issue, we mentioned that bitcoin resilience and acceptance above $32,000 would be a positive development for bitcoin. The failed breakdown was absorbed but did not allow for easy entries — leaving many investors and traders sidelined.

The question on everyone’s mind is: what’s next?

Firstly, the market is teetering at the boundaries of the 10-week strong range. In order to accommodate potential deviations (which are ultimately sold by definition), the $42,600 level denotes the top of the range and $30,000 at the bottom.

At the time of writing, BTC/USD is trending above the 20-weekly EMA, which is the main technical consideration for lengthy bull/bear market conditions. As such, a weekly close above $39,000 would certainly give more credibility to bullish arguments in the coming weeks and would suggest that the bulls are adamant about defending this reclaimed territory. Should that happen, then pull-backs (even below the EMA) can be bought with confidence in my book.

Second, despite being range-bound, bearish market structure has been broken and prices have been climbing for the 7th consecutive day. The risk-to-reward for sidelined bulls must therefore be considered within this context, which is to say that buying vertical prices is not for the faint-hearted. Per the above chart, the better scenario would be to buy the $34,000 — $35,500 price range if the opportunity presents itself.

If prices reach here and a bounce does not materialise, the worst-case scenario would be for prices to bleed and trend towards Michael Saylor’s average entry price of around $26,000.

Thirdly, the technically ‘easy’ trade is done and dusted given that prices have reached the top of the range.

Should the rally continue to show strength, then risking off at $50,000 — $52,000 would be reasonable due to various confluent factors (also bearing in mind that selling pressure increases as price trends towards all time high).

If the best-case scenario for patient bulls materialises, there’s nothing to think about except executing the plan.

After all, a $100,000 BTC is a little over 2x from here.

Catch you later.

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Christopher Attard
Founder of Chris on Crypto
Contributor to www.cityam.com
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Article Categories:
Bitcoin · btc · Crypto · cryptocurrency · Miners
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