Bitcoin Approaches Breakout: Key Levels in Focus

Most recently, Bitcoin has been trading with remarkable precision, respecting both dynamic support and dynamic resistance levels almost to the dollar since August 24th. These two trendlines are now converging, narrowing the price action and bringing us closer to a decisive breakout.

The trading plan here is straightforward: a breakout to the upside would trigger a proper buy signal, while a breakout to the downside would indicate a sell signal. However, traders should remain cautious of potential false breakouts and liquidity grabs. A false breakout to the upside could actually serve as a sell signal, while a false breakout to the downside would instead act as a strong invitation to buy.

For now, Bitcoin sits at a crucial crossroads, and the next move outside of this narrowing channel will likely set the tone for the coming weeks. The key is to watch how price behaves around these levels and be ready for whichever scenario unfolds.

Source: https://www.axiory.com/analytics/technical-analysis/bitcoin-approaches-breakout-key-levels-in-focus