The recent price action of #Bitcoin has shown weakness, failing to close above the crucial resistance level of $52,100. There was a slight rejection around the $52,000 mark, leading to a subsequent decline.
A new perspective emerges, suggesting the formation of a bull flag pattern. This pattern appears slightly tilted downwards, with price movements confined within lower and upper key points. If this analysis holds true and the price revisits $50,600, there may be potential for a rapid rebound, possibly towards $50,200 or even $50,000, which could prompt an exit from SHORT trades.
Despite the efforts of bears, the failure to drive the price below $50,000 indicates potential strength in favor of the bulls. While a further drop of around -20% to -25% is plausible, it may not have a significant impact if the price manages to maintain levels above $53,000. Even a -20% correction would only bring the price to approximately $42,500.
The order book dynamics remain largely unchanged from yesterday, reflecting stability on both buy and sell sides.
Bitcoin dominance has followed expectations, declining to 52% and relieving pressure on altcoins, particularly notable in assets like GALA, COMP, and SUSHI, which are beginning to show signs of recovery. A further decline to 52.40% dominance is anticipated, which could provide further support for LONG positions.
The trading strategy remains unchanged, with a continued SHORT position in Bitcoin. However, adjustments have been made to consider closing the SHORT position if the daily close exceeds $52,160 or if the price approaches $50,000. Additionally, existing profitable LONG positions will be maintained unless invalidated by market conditions.
$BTC #BitcoinUpdate
Disclaimer: This stellar analysis comes straight from the insightful Ualifi Araújo ( X - ualifiaraujo ), a beacon of wisdom in the crypto realm. Shared with permission within the Binance community, it's important to remember that this analysis is for educational purposes only. DYOR (Do Your Own Research) and remember, this isn't financial advice! 🚀