As I wrote in my previous BTC report, a break above 6850 activates the inverted and that is now in the realm of Captain Obvious. All of the "experts" who were all shouting BTC 3K are now all shouting BTC 10K. Where were they in June?
The confirmed inverted signifies a broader movement is now in progress. This means support levels are more likely to hold and resistances break.
7381 is the .382 resistance of the structure relative to 9990 high. This is a key level that needs to be cleared in order to pave the way for a recovery back to 10K. There will be minor resistances along the way, and they will serve as potential targets, not levels to short.
As of now, this is a location to lock in profit if you have some. Do not be distracted by the noise emanating from the talking heads or your own urge to buy. Patience pays, not forced trades.
At S.C., we are waiting for the next swing trade setup. Based on current structure, the first attractive location is the 6823 support (.382 of the recent structure relative to the 5750 low).
In summary, no one can predict when these types of moves are going to unfold. It is all about the probability of the location. At the lows I specifically pointed out that sentiment was completely inverse to where we were at the December highs.
Now that price has established clear structure, we can form new expectations about behavior in the near future. It is reasonable to expect higher lows and supports to hold. We know where the most attractive prices are, but we don't know if the market will test them.
No market rallies in a straight line. Over the next week or so, a retrace of an unknown magnitude is likely. At S.C. patience is our guide as we follow best practices and wait for a favorable setup.
Also there is a rumor that I am leaving TV. I am flattered that the community would notice something like that, but it is NOT true. This community has been very warm and supportive and I am grateful for the ability and experience to be able to help others on here. I was new to this game once and understand the struggles all too well. There is no better reward than people reaching out to thank me for providing a better learning experience.
All I wrote in my previous report was at S.C. we are making some changes in regard to the availability of our content.
What do you think of my graph: