Bitcoin (BTC) has been known to experience market volatility and price fluctuations, making it challenging for investors to determine the best times to buy this pioneer cryptocurrency. However, a crypto analyst going by the name of ‘Stockmoney Lizards’ has recently shared insights on key price levels that investors should keep an eye on for potential buying opportunities.
According to the analyst, Bitcoin has been exhibiting a classic 5-wave uptrend followed by an ABC correction with an overarching wave B. This type of correction pattern is a common occurrence in uptrends and downtrends, reflecting a three-wave correction within the Elliott Wave Theory. The analyst pointed out that Wave B ended around the $69,885 mark, which historically acted as a resistance level for Bitcoin’s price movement.
The crypto analyst also highlighted the $66,745 price point as another resistance level for Bitcoin, with the red line representing a Point of Control (POC) on the 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 analyst suggested that the support area between $61,800 and $62,300 was an important buying level to monitor. He emphasized that as long as Bitcoin’s price remains above $61,800, the potential uptrend is likely to continue. However, a break below this level could lead to a further decline to test the 2.618 Fibonacci extension at $56,800.
Despite the recent decline in Bitcoin’s price – with the cryptocurrency trading at $61,594 at the time of writing – the crypto analyst remains bullish on the short-term and mid-term outlook for Bitcoin’s price. Other analysts, including ‘TOBTC’, have also predicted potential rallies to new all-time highs for Bitcoin, expecting a breakout by September after the cryptocurrency was rejected at the $70,000 resistance level.
In conclusion, monitoring key support and resistance levels, such as those identified by the crypto analyst, can help investors make informed decisions on when to buy Bitcoin. By keeping a close eye on price movements and potential buying levels, investors can navigate market volatility and take advantage of potential opportunities in the cryptocurrency space.