Bitcoin is in an undeniably bullish market, according to Adrian Zdunczyk, Chartered Market Technician and founder of The Birb Nest. In a Twitter thread, Adrian provided multiple reasons he believes the Bitcoin market will continue with the newly discovered uptrend.
According to Adrian, relying on existing phenomena maintained over decades delivers better results when trading the financial markets. Hence, he based his analysis on facts about historical market behaviors.
Adrian noted that the financial markets performed their best in pre-election years, with only one exception in the past 84 years. With such data, there is a 98.8% chance that the market will trend higher in 2023.
With a screenshot, Adrian explained Bitcoin is in an uptrend and traders should approach it using the John R. Hill & George Pruitt recommendations. They suggested trend-following breakout systems be the best-performing tactics under such market conditions.
Adrian used the 200-day moving average to predict that Bitcoin is in a dominant bull trend, and traders should consider it so. He supported his claim using a pictorial illustration of the psychology of a Bitcoin cycle. He also explained that traders still shorting Bitcoin may be experiencing the cognitive dissonance of the early stages of a reversal.
The Birb Nest founder acknowledged corrections are inevitable in the Bitcoin market. He attributed them to market sentiments and traders’ attitudes. However, he encouraged traders driven by regret bias to take the buying opportunity in the fear they would miss out again.
Adrian favored trading breakouts along the dominant trend over anticipated mean reversion tactics. He believes that the money is in the established market direction. He advised against trading counter the market trend, noting it could lead to significant losses in the market.
Under the current market situation, Adrian identified the $26,500 to $27,000 Bitcoin price level as an area of interest for buyers. It is the recent territory dominated by bulls. He thinks the recency, regret, and representativeness biases can encourage traders to use the heuristic ‘rule of thumb’ and buy the support.
Disclaimer: The views, opinions, and information shared in this price prediction are published in good faith. Readers must do their research and due diligence. Any action taken by the reader is strictly at their own risk. Coin Edition and its affiliates will not be liable for direct or indirect damage or loss.
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Source: Cryptocurrency - investing.com
