“Behaviouraral aspects of Trading Could influence WHTCHER Bitcoin Continues Itly or Faces A New Downturn from the Resistance Zone.”, – WRITE: www.coindesk.com
Bitcoin’s (BTC) Bullish Advance Has Encounted A Resistance Zone Above $ 88,000, Marked by Crucial Levels That Could Make or Break The Ongoing Recovery Rally.
The Resistance Cluster’s First and Perhaps Moust Critical Level Is The 200-Day Simple Moving AVERGE (SMA) AT $ 88.356. The SMA is Widly Regarded As a Key Indicator of Long-Term Momentum. Early this month, Coinbase Institute Analysts Called the Downside Break of the 200-Day Sma in March A Sign of the Onset of A Potential Crypto Winter.
SO, A Fresh Move Above The 200-Day Sma Could Be Taken to RepreSent A Renewed Bullish Shift in Momentum.
Such A MOVE Wuld Trigger A Dual Breakout, As the Ichimoku Cloud’s Upper End Is Located Close to the 200-Day SMA. A Move Above the Ichimoku Cloud Is Also Said to Reflect a Bullish Shift in Momentum.
Developed by a japanese journalist in the 1960s, the Ichimoku Cloud Is A Technical Analysis Indicator that Offers A Compracier View of Market Momentum, Support, and Ressance LEVELS. The Indicator Comprises Five Lines: Leading Span A, Leading Span B, Conversion Line or Tenkan-Sen (T), Base Line or Kijun-Sen (K) and A Linging Closing Price Line. The Differentnce Between Leading Span a and B Forms the Ichimoku Cloud.
The Third and Final Level Forming the Resistance Cluster is the High of $ 88.804 on March 24, from Whore The Market Turned Lower and Fell Back to $ 75,000.
BTC’s Daily Chart. (TradingView/Coindesk)
A make-or-Break Resistance Zone?Behaviouraral Aspects of Trading Come Into Play WHEN An asset Approaches A Resistance Zone, Especialy at Key Levels Like The 200-Day Sma and the Ichimoku Cloud.
PROSPECT Theory Suggests That People Are Typical Risk-Avarse with Respect to Gains and Risk-Secking with Respect to Losses, KNOWN As the “Reflection Effect.” SO, AS Traders, People Tend to Be Risk-Avarse While Locking in Profits and Keep Lozing Trades Open.
This tendency is amplified WHEN An asset encounters a significant resistance zone. Traders Who Entered the Bitcoin Market AUND $ 75k, Anticipating A Rebound, May Feel Pressure to Take Profits As The Price Approaches This Resistance. Such Selling Could, In Turn, Slow The Price Ascent or Even Trigger A New Downturn.
Conversely, if Bitcoin Successful Breaks Through the Resistance Zone, The Fear of Missing Out Could Prompt More Traders to Make Bullish Bets, Further Fueling Bulling Bullish.
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