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Cryptocurrencies: covering the gap of Joe Biden or a deep 20% correction

The follower of cryptocurrency movements can identify two important areas that will determine where the markets are heading in the coming days. The optimistic outlook will tend to return markets to fill the gap of US President Joe Biden (Bitcoin between 6166: 56016), the movement was not violent on the rest of the cryptocurrencies, there is a big drop, but it without wide gaps, Bitcoin was the most affected

But we do not forget important factors before we get involved in buying or selling

We have large open trading positions around 46000 levels, these centers will provide a lot of support for Bitcoin, the support area will also be strengthened and supported by the presence of a deep 20% correction (we have not yet experienced any correction since the beginning of the upward trend in October 2020) where the uptrend continued from 11700 to 64870 almost without correction

So we have two factors that will technically rule the markets, the first is the expected tendency to cover the Joe Biden gap (the US President’s tax plan caused that gap) and thus the markets will wait for the opportunity to rise again to 60,000 levels.

The second factor is the market’s need to test a deep correction of 20% before any rally. The correction level can be calculated based on the high of 64870 and the low of 11700, thus we can expect a possible scenario as follows:

The markets continue to trade down and up between the levels of 53000 and 45000 before re-ascending due to the pending short positions around that area, and thus there will be a tendency to push Bitcoin to return to cover that gap, but we will also be waiting for violent resistance and an important psychological level at 60,000, but just covering the gap will make the rise A higher psychological level is a reason for more ascendancy, which is expected to reach higher from the last peak recorded at 64870, this may be the beginning towards 10,0000

Link to my original article on Arincen Network

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