After trading in a narrow range for months, Bitcoin ($BTC) is now poised for a significant breakout over crucial resistance.
Bitcoin ($BTC) reached a bottom in mid-June 2022 after declining 74% from its high of 69,000 last year. The King of Crypto has since been bouncing back and forth between 18,500 and 25,000. The long-term weekly chart, however, shows that Bitcoin is currently gearing up for a significant upside breakthrough.
The weekly chart of $BTC below demonstrates why it would be appropriate to re-enter the Bitcoin market soon.
Why Bitcoin is currently poised for a significant breakout:
1. Volume of accumulation – As you can see above, $BTC recently saw the busiest trading week in history.
This is a symptom of covert institutional accumulation, which frequently takes place close to critical support lows. After the “big boys” have finished loading up, huge surges upward frequently accompany such volume increases.
2. Triple bottom support – Over the previous few months, strong support has developed in the 18,000–18,500 range. On the daily chart, a triple bottom pattern is developing.
3. Relative strength: While the major stock indices have been hitting new lows, $BTC has maintained its sideways range. Due to Bitcoin’s rising relative strength to the stock market, when equities inevitably begin to bounce, $BTC may soar higher (which began on October 3).
Don’t rush in
Always wait for a suitable entry trigger price before making a trade. Bitcoin must, in particular, convincingly cross its downtrend line on bigger volume. However, the price of bitcoin ($BTC) is also remains below its 50-day moving average, which is a crucial intermediate-term trend indicator. As a result, before entrance, we also need to observe $BTC break out above its 50-day MA.
The good news is that the downtrend line and the 50-day MA neatly converge (around the 20,200 level). The daily chart time frame below displays the suitable buy trigger and a good stop price to guard against an unsuccessful breakout:
Our profit target area is resistance near the 29,000 level, as shown on the first chart. That represents a profit target of more than +40% with a buy trigger over 20,200. With (less than) 10% at risk and a possible profit target of almost 40%, this swing trade position has a very favorable risk-reward ratio of 1:4.
Flight to Bitcoin’s new “safety”?
The largest investment bank in the world, Credit Suisse, may be on the verge of failure, according to recent news reports.
A similar “black swan” incident to Lehman’s 2008 bankruptcy may have far-reaching effects on the whole financial system, especially given how much bigger Credit Suisse is than Lehman.
The traditional finance industry could undoubtedly suffer serious, long-lasting impacts from the collapse of Credit Suisse, but what about Bitcoin? The idea behind Bitcoin is to give investors a way out of overly leveraged financial systems. Therefore, a Credit Suisse bankruptcy may conceivably be positive for Bitcoin.
Bitcoin would be a crucial component of globalization and widespread acceptance if it were to divorce from financial markets while everything else is collapsing. However, a lot of market makers and institutions still consider bitcoin to be a “risk on” asset.
Accordingly, if liquidity disappears due to a black swan occurrence, Bitcoin might just as quickly fall below support.
Both outcomes are possible, therefore we won’t make any assumptions about how Bitcoin will behave in the event of a Credit Suisse catastrophe (which may not even happen). Therefore, it really doesn’t matter what we believe will happen to $BTC or which direction it will go. Chances are there. Wait for a suitable purchase trigger price, though (above the downtrend line and 50-day MA).
Always remember to apply your stop loss because the markets are unpredictable.
Another high performing asset
Another high-performing asset has been the Tamadoge (TAMA) coin, which has had an incredible performance over the last few days. The idea is similar to Tamagotchi in that users can buy a pet, feed it, and then engage in combat with it once it has grown up. Because it is a play-to-earn (P2E) platform, players may make money while having fun and moving up the leaderboard by gaining Doge points. TAMA is a meme coin with utility that will be used to discover all of the special features of the platform.
Tamadoge was recently listed on OKX, one of the most popular cryptocurrency exchanges in the world. This has caused is to spike in value of hundreds of percent which is an incredible performance in the current environment. Based on its live market cap of over $60 million, Tamadoge is now the fifth largest meme coin behind Dogecoin, Shiba Inu, Dogelon Mars and Baby Doge Coin.
The Tamadoge team is preparing to release a host of new features, one of the most notable being the release of the augmented reality software (AR app) in the fourth quarter of 2023. The ability to be close to their pets while using the app will make it much easier for players to commit to maintaining their well-being.
While we believe in the potential of this coin, investors are encouraged to do their own research before investing. The full paper and roadmap for TAMA can be read here.
Related
- Bitcoin Price Prediction for Today, October 3: BTC/USD Shows Bullish Signals
- In spite of everything, bitcoin has had a positive performance this past quarter
- Tamadoge Price Pumps 150%, Top Crypto Gainer Today, NFT Drop News
Tamadoge – Play to Earn Meme Coin
- Earn TAMA in Battles With Doge Pets
- Maximum Supply of 2 Bn, Token Burn
- Now Listed on OKX, Bitmart, Uniswap
- Upcoming Listings on LBank, MEXC
