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 remains bearish 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. Bitcoin has been hitting higher lowers since late June. Bullish divergence can bee seen on the RSI and MACD. The positive signs are there. However on the flip side, Bitcoin has also continued to hit lower highs. There's resistance on the MACD and RSI 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!
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!
Comment:
Glad we stayed in fiat! Now everything is cheap. 4-hour RSI is 19 which is really oversold. My buy triggered at $6080, but I'm watching to see how BTC reacts. We may have further movement to the downside. Stay tuned!
