BTC May Rise as Long as It Stays Above $33K, Says Trader

The cryptocurrency trader and analyst Crypto Tony revealed in an X post today that he will continue to remain in his long position for Bitcoin (BTC) in the next few days. According to the post, the trader entered into a long position when the market leader was at $29K, and Crypto Tony will keep this position open for as long as BTC remains above $33K.

$BTC / $USD – Update

Simple play here legends. I remain in my long entered at $29,000 while we are above $33,000, and i will be hedging short if we lose $34,100 support zone pic.twitter.com/gnlZc7blmL

— Crypto Tony (@CryptoTony__) November 6, 2023

Although the trader maintains a positive outlook for BTC in the short term, he did share the price at which he will consider hedging his position by shorting the leading cryptocurrency. In the post, Crypto Tony revealed that BTC losing support of $34,100 will be his entry for a short trade.

At press time, BTC was changing hands at $34,906.62, according to the cryptocurrency market tracking website CoinMarketCap. This was after the cryptocurrency king recorded a 0.75% loss over the past 24 hours. The latest drop in price also led to BTC’s dominance in the market dropping 0.32%, subsequently bringing it down to 51.79%.

Daily chart for BTC/USDT (Source: TradingView)

From a technical standpoint, a medium-term rising wedge pattern that was present on BTC’s daily chart suggested that BTC’s price may soon undergo a correction. Supporting this bearish thesis was the daily Moving Average Convergence Divergence (MACD) indicator. At press time, the indicator signaled that BTC’s positive trend may be in the process of a bearish reversal.

Over the past 48 hours, the daily MACD line has crossed below the daily MACD signal line. Furthermore, the gradient of the daily MACD histogram had shifted negative. These technical flags suggest that BTC’s positive trend may temporarily shift to bearish. If these bearish signs are validated, then BTC may fall below $34,100 before continuing to drop to $31,400.

This bearish thesis could be invalidated if BTC is able to break above the rising wedge pattern that was present on its chart. In this bullish scenario, the cryptocurrency could rise to as high as $36,900 in the following few days.

Disclaimer: The information presented in this article is for informational and educational purposes only. The article does not constitute financial advice or advice of any kind. Coin Edition is not responsible for any losses incurred as a result of the utilization of content, products, or services mentioned. Readers are advised to exercise caution before taking any action related to the company.

Source