- Bitcoin is projected to hit $26,000 – $26,400.
- The MA200 weekly indicator plays a significant role.
- Traders are advised to maintain a mixed position.
Bitcoin’s recent tumble from $29,500 was predicted spot on. Now, the crypto giant is inching towards the anticipated $26,000 – $26,400 range. At this price point, Bitcoin could tap into the $300 billion liquidity pool.
Notably, the MA200 (Weekly) line also lurks around this area. This indicator is a key litmus test. It usually tells us if Bitcoin is in a bull or bear phase.
So, what’s the game plan for traders?
First, place long orders between $26,400 – $26,000. This move anticipates a bounce back in Bitcoin’s price. Second, take profits from most of the short position. This position was opened when Bitcoin was at $29.5k. However, keep some of this short position open.
Why?
If Bitcoin breaks below the MA200 (Weekly) line, it’s a signal. It may be time to close long positions. Having a short position open can offset losses from the long position. It also allows you to profit if Bitcoin continues to fall. Remember, a large liquidity pool sits at the 22k region.
In the upcoming days, the market will keenly watch Bitcoin’s encounter with the MA200 weekly line. This event could be a major market mover. Traders should stay alert for updates. As always, informed trading is the key to success in the volatile world of cryptocurrencies.
Disclaimer: This article does not constitute financial advice. It’s solely for informational purposes. Always conduct your own research and consult with a professional before making any investment decisions.
