Bitcoin market focus: Focus on the market breakthrough

Translation: spring_zqy

Bitcoin market focus: Focus on the market breakthrough

Here are today’s Bitcoin trends – Tuesday in Europe

As mentioned in yesterday’s analysis, Bitcoin price experienced a big move over the weekend, hitting a new high on Sunday. Typically, after such big moves, Bitcoin price will remain flat for 24 hours as the market reorganizes and consolidates, and then both buyers and sellers change their previous choices. We did feel a correction in Europe on Monday and in Asia last night, but it was nothing compared to what we experienced over the weekend. In the big picture, this correction has little impact and can be seen as a consolidation as mentioned above. Now the question is what this means for today's trading.

We have had a big move, followed by small fluctuations and sideways trading within the 24-hour range. This consolidation is gradually disappearing, and the market gains are shifting from one side to the other, so we may see a breakout today. However, it is still difficult to determine which side will gain (buyers or sellers), and once a move occurs, the breakout strategy will help us choose.

Therefore, as usual, let us first look at the following data to focus on the situation in Europe this morning.

As shown in the above figure, today's support level is 420.50 and the resistance level is 424.5. The market is likely to see a hat-grabbing phenomenon - the support level will be longer and the resistance level will be shorter - it is estimated that the other side will have a stop-profit or stop-loss price, but it is unknown which side it is.

From the perspective of the breakthrough, the long position after exceeding the resistance level has a target of 430, with a bottom of 422.5; after breaking the support price, the short position target is 415 flat, or the stop loss is 422. Based on this, we can determine the upward risk of our closing position.