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Bitcoin saw a recovery from the level of $ 66,000, but that does not mean that the bullishness of the pioneer cryptocurrency is completely over. It currently sits about 4% below $66,000, making its $63,000 level very attractive to bulls. Although, given the current movement of Bitcoin, the market could see a deep correction from here that could send its price up below $60,000 again.
Bitcoin Symmetrical Triangle May Trigger Reevaluation
Crypto analyst Xanrox presented a possible scenario where the price of Bitcoin could further decline from here. The analyst points to the previous symmetrical triangle formed on the Bitcoin chart with the last decline. This end of the symmetrical triangle sits somewhere around $56,000, which may present a roadblock for the BTC price.
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However, as the analyst explains, the retesting of the symmetrical triangle that lowers the price is not entirely a bad thing. This is because the first breakout of a symmetrical triangle-like pattern, then retests are usually positive. This is because it gives sellers another chance to get in at a good price.
In addition, the crypto analyst indicates that there is an ascending channel that is being broken on the Bitcoin chart. This also gives the fact that the price of BTC can still correct from here. Taking the ascending channel and the symmetrical triangle into account, then it is possible that Bitcoin will fall below $60,000 again.
As the crypto analyst explains, the initial wave 1 impulse is over, so a correction is in the works. Looking at the Fibonacci retracement, the crypto analyst tells traders to look at the 0.382 level, as well as the 0.5 and 0.618 levels. However, the first two are the most important.
When is the Right Time to Buy BTC?
When it comes to buying Bitcoin, the crypto analyst indicates that the 0.382 and 0.5 Fibonacci levels are the best time to buy. Additionally, Xanrox identifies the “unfilled FVG (Fair Value Gap)” and tells traders that it is within this region that they want to enter with digital assets.
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Currently, this unfilled FVG sits between $60,277 and $61,590. Given this, setting buy orders between these levels would be advisable. A crypto analyst explains that this Bitcoin gap may not be completely filled, but that even a partial filling would be a good thing.
“Currently I am still active in Bitcoin, and if you buy now and sell more than 120K, I would consider it a good trade!” said the crypto analyst in closing.
The featured image was created with Dall.E, a chart from Tradingview.com