The Bitcoin market opened with a big green candle in the Asian market. BTC took a surge of 1.64% and hit the resistance zone under $64,000. The zone rejected the price and sent it back to $63,450 where it is trading at the time of writing. The chart shows the completion of the “Cup and Handle” pattern pointing towards an upcoming surge. Let’s analyze the chart and see what is happening.
BTC Taking Correction Walk
Since the start of uprising inside the cup, btc has been moving with correction passing resistance zones. If we pay attention these correction moves are corresponding with a rising trend line started on October 3. The current rejection of bitcoin lies exactly at the tip of this trend line in this zone. The $64,000 is a massive resistance, remember it was an All Time High for btc once? The current rejection does not feel to last longer and the largest crypto will try to hit it once again.
The Moving Averages
Turning on the moving averages gives us a more clear view of the picture. The 200 moving average is being crossed over by the smaller ones showing the rise of the price. Very soon we are going to witness a golden cross over in the hourly chart of bitcoin and the price will start to surge before that, crossing the $64,000 resistance area. This zone has rejected the price in the past week and there are possibilities that with the next hit, it will penetrate and cross.
Bitcoin Liquidity zones
Currently, the liquidity heat map shows that most of the liquidity lies beneath this price and it should move downwards, however, this is all part of the correction. The whale order chart shows that whales are shorting bitcoin, however this time it looks like shorting traps and bullish momentum is rising.
Looking Ahead
History tells us that whenever the market is filled with too much bullishness or becomes the overconfident bull, bitcoin suddenly crashes liquidating those buyers. We saw that last week. Also, when the market cools down and it looks like bitcoin is going slow and not going to surge in the near future and even whales start to short it, the market suddenly pumps leaving everyone in shock. Similar scenario buildup can be seen in the current market. Traders must stay very alert to avoid any losses.
