Bitcoin to rally before drop

in #trading6 years ago

Bitcoin has been creeping higher this week and is heading towards the resistance level around $6,800. The rally started when price hit the $6,200 support level once again and buyers showed up.

Now, what I think is gonna happen early next week is the rally to continue above this week's high and then drop once it reaches around $6,800.

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The reason I don't see price going above $7,000 is that that there's no reason for it to go so far since the closest liquidity on the upside is just above $6,700 (Sep-6 high). The next liquidity on the upside is above $7,400 which is too far away.

So I see the week opening, rallying small to trap more longs and then dropping after midweek to create a bearish weekly candle, targeting the $6,200 support and September lows.

Good luck.

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And to punish some shorts, too. 😈

Yes, I believe late over leveraged shorts at the current prices will be eliminated as well if price pushes up to $6,800

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