The soldiers (bulls and bears) are already on the battlefield. Who wins the Bitcoin Warzone?
It all started in January of this year. The Bulls conquered an important territory, a disputed zone and soon after advancing in the Bitcoin price war. But 6 months later, the bears come to claim this same territory.
On January 1st, Bitcoin reached $29k for the first time. The historic 2017 top was broken in November/20 and since then the price has only gone up. The team of bulls came with everything and during the year (you saw) they managed to play the BTC for almost $65,000. But not everything goes up forever…
A month ago, the bears picked up strength and started to drop the price to around $30,000. It’s been more than 50% down since its all-time high and now, bears and bulls are fighting a big battle.
The Bitcoin Warzone
We can see in the graph the blue rectangle supported by the red arrows. This is a big support zone that started with that fight back in January. At the time, the bulls won and threw the price to over $60K.
This time the bears are coming strong, with negative news amid Elon Musk raving about Bitcoin mining and China banning cryptocurrency companies, but the zone is active. The price rejected by 3x in the support zone and at this moment it shows a slight recovery (say correction).
The key point is seen on the chart between the blue and red rectangles, respectively, between the support zone (29200-31300) and the resistance zone (41900-47400). This is the price fight zone and the rectangles are like the first bases of bulls and bears. To set a trend, the price needs to break one of these bases.
The bulls won in January and now, bears and bulls, fight again to see who is bossing the Bitcoin price; the bases can be buy and sell opportunity zones.
Whoever wins, advances to the next points.
Bears winning, target around $23k.
Winning bulls, target around $58k.
Who wins this battle?