A down day for Bitcoin, as prices slide nearly -3.5% so far.
As pointed out in yesterday's Market Update, Bitcoin's price had reached an important Weekly Supply Level, therefore our current pullback is well anticipated.
Two potential scenarios present themselves:
1. Bitcoin continues it's descent towards our Fair-Value Gap, approx. $30-$32K.
2. Bitcoin re-tests our Weekly Supply Zone prior to filling the gap.
Of these two, scenario 2 is the most likely.
Analyzing nearly every previous Bitcoin price movement of this year, it is extremely rare that Bitcoin puts in a medium-term trend shift without a re-visit or the relevant Supply/Demand Zone that triggered the trend shift.
Conservative traders can simply continue to trim long profits, waiting on the side-lines to see if Bitcoin reacts bullishly from the Fair-Value Gap, or breaks out above our current Yearly High.
Aggressive traders can target a movement back up to resistance, and potentially even consider flipping short upon reaching the target to be prepared for the movement down to fill the gap.
As always, trade safely, and let analysis and data guide your trading decisions - never emotion.
As pointed out in yesterday's Market Update, Bitcoin's price had reached an important Weekly Supply Level, therefore our current pullback is well anticipated.
Two potential scenarios present themselves:
1. Bitcoin continues it's descent towards our Fair-Value Gap, approx. $30-$32K.
2. Bitcoin re-tests our Weekly Supply Zone prior to filling the gap.
Of these two, scenario 2 is the most likely.
Analyzing nearly every previous Bitcoin price movement of this year, it is extremely rare that Bitcoin puts in a medium-term trend shift without a re-visit or the relevant Supply/Demand Zone that triggered the trend shift.
Conservative traders can simply continue to trim long profits, waiting on the side-lines to see if Bitcoin reacts bullishly from the Fair-Value Gap, or breaks out above our current Yearly High.
Aggressive traders can target a movement back up to resistance, and potentially even consider flipping short upon reaching the target to be prepared for the movement down to fill the gap.
As always, trade safely, and let analysis and data guide your trading decisions - never emotion.
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