Investing in Bitcoin can be a daunting task, especially with the market’s volatility and the constant fluctuations in the price of the pioneer cryptocurrency. However, crypto analyst ‘Stockmoney Lizards’ has stepped in to provide some guidance on the best times to buy Bitcoin. According to the analyst, there are key price levels that investors should keep an eye on for potential buying opportunities.
In a recent analysis shared on X (formerly Twitter), the crypto analyst pointed out that Bitcoin’s current price movements indicate a classic 5-wave uptrend followed by an ABC correction with an overarching wave B. An ABC correction is a pattern within the Elliott Wave Theory that reflects a three-wave correction during uptrends or downtrends. This pattern can help investors identify trend continuations and potential buying opportunities.
Resistance and Support Levels
The analyst highlighted that the Value Area High (VAH) around the $69,885 mark served as a resistance level for Bitcoin in the past. Additionally, the $66,745 price point and the Point Of Control (POC) were also identified as crucial resistance levels. On the other hand, the 1.618 Fibonacci extension level, along with the 0.5 Fibonacci retracement level and the Value Area Low (VAL), were noted as potential support areas for a new uptrend. These levels are essential for investors to monitor for buying opportunities.
Important Buying Levels
According to the analyst, the support area between $61,800 and $62,300 is a critical buying level to watch out for. If Bitcoin’s price breaks below the $61,800 mark, a further decline to test the 2.618 Fibonacci extension at $56,800 should be expected. Despite the potential for a further decline, the analyst remains optimistic about Bitcoin’s short-term and mid-term price outlook.
At the time of writing, Bitcoin is trading at $61,594, reflecting a 4.21% decline in the last 24 hours. Despite this short-term decline, many analysts, including ‘TOBTC,’ remain bullish on Bitcoin’s price. TOBTC predicts a potential breakout by September, even after Bitcoin experienced a significant decline in its price, falling below the $63,000 mark.
Investing in Bitcoin requires careful analysis of key price levels, trend movements, and support/resistance areas. By monitoring these indicators and staying informed about market trends, investors can make more informed decisions about when to buy Bitcoin for potential profit opportunities.
