Buy Or Sell Bitcoin Now? Analyst Reveals Ultimate Bias Guide
June 10 2024 - 3:30AM
NEWSBTC
In an analysis released to his 280,000 followers on X, the renowned
crypto analyst known as Cold Blooded Shiller (@ColdBloodShill)
provided an in-depth look at the current state of Bitcoin amidst a
volatile market environment. His commentary, titled “Ultimate BTC
Simple Bias Guide,” unpacks the recent emotional reactions
triggered by Bitcoin’s price movements and offers a strategic
framework for interpreting these changes. Buy Or Sell Bitcoin Now?
On Friday, the Bitcoin price plummeted from $71,900 to $68,500.
This decline coincided with the release of the US Employment
Situation Summary Report, a piece of economic data that typically
influences market sentiments across various asset classes,
including cryptocurrencies. “It’s very easy to forget that it was
simply one red candle on Friday that caused a huge reaction in the
emotion of the discussion on Twitter,” Shiller writes, emphasizing
the often exaggerated emotional response to single events in the
crypto markets. Cold Blooded Shiller’s technical examination of
Bitcoin reveals a strong underlying uptrend, despite recent price
volatility. However, he identifies critical resistance and support
levels that are pivotal to understanding the future movements of
Bitcoin’s price. Related Reading: Bitcoin & Ethereum On “Path
To Acceleration,” CryptoQuant Explains Why The $72,000 price level
stands as a major resistance, having thwarted Bitcoin’s upward
movement five times, including the most recent rejection last
Friday. Shiller elaborates, “We have resistance of the range at
$72k,” indicating that a breakout above this level could
potentially lead to significant bullish momentum. Conversely, the
support levels at $67,000 and subsequently at $61,000 are described
as crucial for maintaining the bullish scenario. Shiller warns,
“BTC needs to hold the uptrend, if we lose $67k, we’re once again
going to be in a downtrend with this being confirmed as a LH [Lower
High] and therefore negative market conditions continuing.” The
further loss of $61,000 could, according to him, signal the end of
the current bullish cycle, with implications that could extend to a
broader weekly downtrend. Analyzing the broader market dynamics,
Shiller points out the absence of high time frame (HTF) bearish
divergences on the Relative Strength Index (RSI), a common
indicator used to predict potential market reversals. “As a
positive, there are no HTF bear divs, which have typically been a
strong signal for cycle tops. We’re clean on RSI,” he notes. This
observation suggests that despite the testing of critical
resistance levels, the market might not yet be at a cyclical peak,
providing some reassurance to investors concerned about potential
downturns. Related Reading: Bitcoin ETFs Witness 18 Straight Days
Of Inflows, Options Traders Eye $100,000 Shiller’s guidance for
traders is to maintain a watchful eye on the key price levels that
will dictate Bitcoin’s short-term market direction. “The Daily
needs to make a fresh high and break $72k; otherwise, it’s at risk
of losing the Daily trend below $67k,” he advises, highlighting the
importance of these thresholds in shaping market sentiment and
trading strategies. This advice suggests that while the broader
trend may still support a bullish stance, readiness to pivot based
on key technical indicators is crucial. In light of these
observations, Shiller advises his followers to use these insights
to strategically manage their investment portfolios. The current
market conditions, characterized by attempts to break resistance at
$72,000 and support holding at key lower levels, imply a tactical
approach to investment decisions. Traders and investors are advised
to set clear markers for adjusting their positions, preparing for
potential shifts in market dynamics that could influence their
investment outcomes. At press time, BTC traded at $69,484. Featured
image created with DALL·E, chart from TradingView.com
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