In an analysis shared with his 280,000 followers on X, the renowned cryptocurrency analyst known as Chilly Blooded Shiller (@ColdBloodShill) presented in-depth look with Bitcoin’s current state in an unstable market environment. His commentary titled “Ultimate BTC Simple Bias Guide” highlights recent emotional reactions to Bitcoin price movements and offers a strategic framework for interpreting these changes.
Buy or sell Bitcoin now?
On Friday, the price of Bitcoin fell from $71,900 to $68,500. The decline coincided with the release of the U.S. Employment Summary Report, economic data that typically influences market sentiment across asset classes, including cryptocurrencies. “It’s very easy to forget that it was just one red candle on Friday that caused a huge reaction in the Twitter discussion atmosphere,” writes Shiller, highlighting the often exaggerated emotional reaction to single events in cryptocurrency markets.
Chilly Blooded Shiller’s Bitcoin technical study reveals a sturdy uptrend despite recent price volatility. However, it identifies critical resistance and support levels that are crucial to understanding Bitcoin’s future price movements.
The $72,000 price level is the main resistance that has thwarted Bitcoin’s upward move five times, including the most recent rejection last Friday. Shiller explains: “We have resistance in the 72,000 range. dollars,” indicating that a break above this level could potentially lead to significant growth.
On the other hand, support levels at $67,000 and then $61,000 are identified as crucial to sustain the bullish scenario. Shiller warns: “BTC must continue its uptrend if we lose 67,000. dollars, we will be in a downtrend again, which will be confirmed as LH [Lower High] therefore, unfavorable market conditions persist.” He said a further loss of $61,000 could signal the end of the current bullish cycle, which could result in a broader weekly downtrend.
Analyzing broader market dynamics, Shiller notes the lack of high time frame (HTF) bearish divergences in the Relative Strength Index (RSI), a common indicator used to predict potential market movements. “The positive is the lack of HTF bear declines, which have typically been a sturdy signal for cycle tops. We have no doubts about RSI,” he notes. This observation suggests that despite testing critical resistance levels, the market may not yet have reached a cyclical high, reassuring investors concerned about a potential downturn.
Shiller’s tips for traders are to keep a close eye on key price levels that will dictate the near-term direction of the Bitcoin market. “The Daily needs to reach a new peak and exceed 72,000. dollars; otherwise it runs the risk of losing the Daily trend below 67k. dollars,” he advises, emphasizing the importance of these thresholds in shaping market sentiment and trading strategies. This advice suggests that while the broader trend may continue to support a bullish bias, a willingness to change direction based on key technical indicators is key.
In delicate of these observations, Shiller advises his followers to operate these insights to strategically manage their investment portfolios. Current market conditions, characterized by attempts to break the resistance at the $72,000 level and maintaining support at key lower levels, imply a tactical approach to investment decisions. Traders and investors are advised to establish clear indicators to adjust their positions in preparation for potential changes in market dynamics that may impact their investment performance.
At the time of publication, the price of BTC was $69,484.
Featured image created with DALL·E, chart from TradingView.com
