We are considering two possible scenarios for the development of the situation with BTC.
At the end of October, following a significant impulsive rise of BTC from $29,614 to $35,300, there was an increase of more than 18%. In the following month, an ascending trading channel was observed, which was successfully broken after testing the upper boundary at $39,670. As a result of the breakout, the asset reached a price level of $44,436, marking an increase of more than 11%.
The first scenario focuses on the current overbought condition of the BTC price, which suggests the potential for a correction. There is a possibility of a downward corrective movement until reaching the upper boundary of the trading channel, located around $40,600, with a subsequent potential reversal. If the price remains stable at this level, there is consideration for opening a long position on BTC.
In the second scenario, a significant price decrease towards the level of the highest volume POC at $37,100 is anticipated. From this level, a price reversal might occur, followed by a continuation of the upward movement. If the price remains stable at this level and there are signals for a reversal, we are also considering the possibility of buying BTC.
At the end of October, following a significant impulsive rise of BTC from $29,614 to $35,300, there was an increase of more than 18%. In the following month, an ascending trading channel was observed, which was successfully broken after testing the upper boundary at $39,670. As a result of the breakout, the asset reached a price level of $44,436, marking an increase of more than 11%.
The first scenario focuses on the current overbought condition of the BTC price, which suggests the potential for a correction. There is a possibility of a downward corrective movement until reaching the upper boundary of the trading channel, located around $40,600, with a subsequent potential reversal. If the price remains stable at this level, there is consideration for opening a long position on BTC.
In the second scenario, a significant price decrease towards the level of the highest volume POC at $37,100 is anticipated. From this level, a price reversal might occur, followed by a continuation of the upward movement. If the price remains stable at this level and there are signals for a reversal, we are also considering the possibility of buying BTC.