In a recent video by Crypto Rover, the popular cryptocurrency analyst highlighted a significant danger signal flashing in the Bitcoin market. With a focus on support and resistance levels and the possibility of a bullish or bearish breakdown, Crypto Rover delved into the recent liquidation event and provided an update on their trading account.
According to Crypto Rover, Bitcoin has been consolidating within a specific range for over 15 days. While a retest of the upper resistance level was observed, the cryptocurrency failed to break above it, resulting in a substantial downward rejection. As long as Bitcoin remains within this range, Crypto Rover advises caution and expects limited price movements.
The video also discussed the consequences of high leverage trading during consolidation phases. Yesterday’s market activity witnessed over $160 million in Bitcoin long and short liquidations, emphasizing the importance of exercising caution when trading in such conditions.
Crypto Rover analyzed various time frames, including the four-hour and weekly charts. While Bitcoin broke out of a four-hour consolidation phase, it failed to maintain the one-hour breakout. The market remains in a consolidation phase, awaiting the next breakout. A decisive break below the lower support line could signal further downward movement, leading to potential lower price targets.
Furthermore, Crypto Rover highlighted a bearish divergence forming on the weekly time frame, where Bitcoin’s price action recorded higher highs while the relative strength index (RSI) indicated lower highs. However, this bearish divergence could be invalidated if Bitcoin surpasses the $35,000 to $34,000 range.
The video also addressed a significant development involving BlackRock, a major asset management firm. The CEO, Larry Fink, revealed in an interview that they are working closely with regulators to get a Bitcoin spot ETF approved. Crypto Rover believes that if approved, such an ETF could substantially impact Bitcoin, driving it to new all-time highs.
Regarding short-term predictions, Crypto Rover acknowledged the difficulty of forecasting price movements during the current consolidation phase. The key is to monitor the breakout of support or resistance levels for the next significant move. While Crypto Rover remains long on Bitcoin, they intend to open additional positions soon with a new $50,000 trading account.
As the market consolidates, Bitcoin traders are advised to exercise patience and await a breakout that will increase volatility. The video concludes with Crypto Rover expressing their long-term bullish outlook for Bitcoin’s value, reinforced by the potential approval of a Bitcoin spot ETF.
Crypto Rover’s updates and insights provide valuable information to cryptocurrency enthusiasts and investors, allowing them to stay informed about the market’s dynamics and make more informed trading decisions.
