Bitcoin' failed to break the 6850 level which was the previous high in the short term. This failed high is not to be a concern as long as the previous low of 5755 remains in tact. What we are looking for is a series of higher highs and higher lows to provide further evidence we are actually seeing a reversal in the broader perspective. A bottoming structure is starting to play out with the formation of an , often indicative of the market bottom and a potential rally. Again the formation of the is not as important as the structure and levels it forms at.
Ideally we would like to see bitcoin' pullback to the between 6008 and 6186 where a reversal would trigger a swing trade. This would be an area that sets up nicely for the more conservative trader. Shallow support is found at 6436 and 6305 which could also setup for a reversal but this type of trade would be for a more aggressive trader that can make decisions in real time, in the event the structure falls apart quickly.
Initially 7006 is the first to break through. This is the 0.618 retrace of the overall swing starting in early June. There are two levels in the broader term that are important to break through 7375 and taking out the June high of 7780. As a longer term investor the 7780 level is the key level in my opinion. A break of this level is only one hurdle, but sets up nicely for a rally towards 10k.
There will plenty of trade opportunities once the bull market resumes and a potential trade setup in the near term. As long as the June low holds (though we really want to see 6000 hold) we are just monitoring the market and allowing the cards to be dealt before making a trade. These trades provide opportunity to increase the return on our overall portfolio which will be posted on S.C. along with our core portfolio which is already posted.