To back or not to back

Morning folks,

So, BTC hits ATH and 0.618 (COP) 67K extension on monthly chart. This is first upside target of new large AB-CD pattern. Also price hits weekly overbought. Technically, picture definitely suggests that BTC should go higher in long-term. Our first target is 75-77K. But in near-term the major question is whether it shows any reaction on the top and what reaction will be.

As usual it could be either wash&rinse of the top and deeper pullback or market could start coiling around it. The former is more bearish for lower time frames than the latter. Hence the strategy is different depending on what you would like to do.

For bulls we suggest it makes sense to wait for pullback to 56.5-59K area where nice bullish setup might be formed and this area is attractive to possess for upward continuation. Besides, hardly you would like to buy at ATH and weekly overbought level.

For the bears picture is not as pleasant, mostly because of the major tendency. Right now the background for taking position is not ready it. Yes, market hits the targets but it is unclear the reaction yet, as too few time passed since then. As targets stand at long term chart, do not scare to miss the entry moment. If reaction starts - it will be clear and extended.

That's being said - now we should understand what the reaction will be (if any). Approximately, bulls should keep an eye on 56.5-59K, while bears have to wait for clear signs and patterns before pull the trigger