BTCUSD: The Liquidity Zone with a Death Cross and 1W MA50 test.

BTCUSD formed the 1W Death Cross but its technicals on the weekly time frame turned bullish (RSI = 59.814, MACD = -529.200, ADX = 40.659). This indicates that the buying pressure has a strong enough momentum to negate this bearish pattern. The most strategically significant action in our view is where the 1W candle will close as this week it hit the 1W MA50 for the first time since the first week of April 2022.

As shown on the 2019 Cycle (chart right) this is the long term Resistance that separates Bear from Bull Cycles. On April 29th 2019, Bitcoin closed its weekly candle over the 1W MA50 and the Bull Cycle was confirmed beyond doubt and the rally was extended. Therefore it is crucial to see if this week's candle will close over the 1W MA50.

Apart from that, it is attempting to break inside the Liquidity Zone, that is the Zone which was a Demand Zone during the Bear Cycle and a Supply Zone as it bottomed. On a 1W basis this Zone was tested 5 times as Demand in the 2018 Bear Cycle and 1 time as Supply in 2019. When the price closed over the 1W MA50, is also crossed above the Liquidity Zone in a week.

Significant occurrence is that the 1W RSI was around 59.000 when Bitcoin hit the 1W MA50 in 2019 and is around 59.000 today as it hit the 1W MA50 again.

If weekly closes over the 1W MA50, we expect the 1W Death Cross to be invalidated and Bitcoin to charge for Fibonacci 0.618 as it did in 2019. As a result we will increase our Bitcoin exposure on our portfolio and set a TP = $45,000 by the end of this summer.



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