So here's my overall look at the market. Looking at the daily chart
, I'm getting mixed signals. There have been many positive developments recently. While Bitcoin
in my opinion, the alt market has been rounding out their bottoms and many been breaking out to the upside. It's possible this brings some confidence back into the market and turns things around for BTC
has been hitting higher lowers since late June. Bullish divergence
can bee seen on the RSI
. The positive signs are there. However on the flip side, Bitcoin
has also continued to hit lower highs. There's resistance on the MACD
indicators. And it is currently throwing up a bear flag
as it approaches key overhead resistance that has been in place for over half a year. That's still bearish
to me. I think what Bitcoin
needs to get is a higher high, which leads me to my first target. If Bitcoin
makes a higher high at $6800, it will have broken a very strong resistance line and will surely bring confidence back into the market.
Taking in all the evidence, my bias leans to the downside for now, but I like the developments I'm seeing. I'm anticipating another drop
to the low $6000s. That bounce off support will be key. With all the positive signs of the market, it could be the bounce that gets Bitcoin
out of this descending triangle
. But breaking this support would probably take us to the low $5000s. Wyckoff Spring from here maybe? ;) We'll see.
Conclusion: I'm in fiat/tether until I see where the market wants to go. To me there is no point in gambling as the risk/reward isn't worth it. Bitcoin
is only $260 off from hitting a very bullish
target. That would be my cue to come back in as I believe the market would be poised for some big gains. But a move to the downside could be large and fast which means cheaper alt coins and Bitcoin
for me. I think fiat is the smart play until we break overhead resistance. Cheers!