The 6K psychological support, reversal zone boundaries at 5956 and 5669 along with the 8171 to 4938 broad support have been the focus. At S.C. we have been building inventory and continue to look for long trades in these markets.
What appears to be the key driver behind this surge in momentum is the U.S. Dollar. If you take a look at a larger time frame Dollar Index chart, you will notice the same type of price action, but inverted. Instead of a failed low, you will observe a failed high.
Interestingly enough, this reversal can been seen across forex pairs that counter the Dollar like EUR and GBP.
Do not forget, the major coins trade against fiat, and the world reserve currency is still the USD. That means it carries the most weight. Any broad moves in the Dollar can have dramatic effects on these coins.
If there is now a higher correlation to the USD, I want to be aware of it. For this reason I will be publishing a technical report on the USD on S.C. tomorrow so make sure to look for it.
In summary, at S.C., we are waiting for the next swing trade entry long. Since structures are still in play, a retrace is likely, but the probability of a subsequent higher low has increased. Any pull back into the 6K area, followed by a long trigger will prompt us to participate in another long trade idea.
Stops and targets will continue to be conservative until broader structures are taken out such as the 7381 resistance (.382 of current structure).
The probability of the broader location outweighs the smaller time frame noise. And it has been reiterating long over and over. Do not lose sight, especially if this market decides to retest the lows once more. The next pull back will either make or break the broader reversal that appears to be in progress.
We are still in the same channel. A sustained move above 6650, retest of support and back up. When it hits the peak, I will be ready to short it this time. The only way now is down for this year.... Binance CEO, hedge fund managers or whoever can say whatever they want to say. Unless we see BTC ETF approved any time soon, this year will be like 2014 and 2019 will be like 2015.
John McAfee should be looking for an escape plan....
Since the Bulls were able to pull off a bullish engulfing candle and with most recent news leaning bullish, I am expecting a higher low (and I wouldn't expect a major low here. Not yet at least.)
Thanks for sharing.
Weekly with link to full thread and recent updates where we have been discussing corrective price structures and their behavior: