In the world of cryptocurrency trading, market volatility and price fluctuations are common occurrences. For investors looking to purchase Bitcoin, the pioneer cryptocurrency, determining the best times to enter the market can be a daunting task. However, a crypto analyst known as ‘Stockmoney Lizards’ has recently shared insights on key price levels to monitor for potential buying opportunities.
According to the analyst, Bitcoin’s recent price actions suggest a classic 5-wave uptrend followed by an ABC correction with an overarching wave B. This pattern, known as an ABC correction, is a continuous sequence that occurs during uptrends or downtrends, reflecting a three-wave correction within the Elliott Wave Theory. By analyzing a Bitcoin price chart illustrating each wave (A, B, and C), the analyst pointed out that Wave B concluded at the Value Area High (VAH) around the $69,885 mark, historically acting as a resistance level.
The analyst also emphasized the $66,745 price point as another significant resistance level for Bitcoin, noting it as a Point Of Control (POC) on the cryptocurrency’s price chart. Additionally, the 1.618 Fibonacci extension level was identified as a potential support area for a new uptrend, coinciding with the 0.5 Fibonacci retracement level and the Value Area Low (VAL), all crucial support levels for Bitcoin.
The crypto analyst advised investors to keep an eye on the support area between $61,800 and $62,300 as an important buying level. While maintaining a bullish outlook for both short and mid-term timeframes, the analyst warned that a break below the $61,800 mark could lead to a further decline, testing the 2.618 Fibonacci extension at $56,800. At the time of writing, Bitcoin was trading at $61,594, showing a 4.21% decline in the last 24 hours.
Several other analysts have also expressed bullish sentiments towards Bitcoin’s price, forecasting potential rallies to new all-time highs for the cryptocurrency. A notable crypto analyst named ‘TOBTC’ highlighted a significant price drop for Bitcoin, falling below the $63,000 mark after facing rejection at the $70,000 resistance. Despite the setback, the analyst predicted a potential breakout by September.
By closely analyzing key price levels and market trends, investors can make informed decisions when it comes to buying Bitcoin. It is essential to stay updated on the latest insights from crypto analysts and monitor developments in the cryptocurrency market to navigate through price fluctuations effectively.