Hey folks,
Pulling the Weekly BTCUSD chart today to see where we are in this pullback and breaking news... We're still bullish!
Sometimes you just need to zoom out a little bit to see the big picture. We gained an important weekly SR level when we broke the 10K level (~$9948).
Generally speaking, all important levels once broken need to be tested so we can confirm the direction of the trend.
We did a perfect pullback to the higher 9Ks. Many expected 9.6K to fill the infamous CME gap. But what is the CME gap exactly? I'm not very compelled by the "fill the gap" narrative and I see absolutely no reason for CME gaps to be filled all the time. Gaps are simply symptomatic of the limited trading periods that CME operates on while we have an asset trading 24/7. There is no fundamental reason why these gaps would need to be filled.
With that said, I'm expecting a bit of sideways from here. Drawing a fractal using the latest swing low PA shows a possible outcome. Note however that fractals are rarely repeated 100%. If BTC manages to close the weekly above $10,450 - $10,500 this should give a solid ground for bulls to step in. The next few weeks leading to the US elections will be decisive in this market on many economical and sociological levels.
Keep an eye open on the SPX and stocks market. This dump was initiated by the weakness of the traditional market after favorable employment reports came out of the US and the US Dollar started to gain strength (look at the DXY chart). We are still very much correlated to stonks so further pain in equities could tank Bitcoin price as people run for cold hard fiat money, at least temporarily. On the longer term, monetary policies are still very much bullish for high-yield assets like Gold and Bitcoin.
Patience and strong hands will be rewarded.
The weaks will be devoured.
Pulling the Weekly BTCUSD chart today to see where we are in this pullback and breaking news... We're still bullish!
Sometimes you just need to zoom out a little bit to see the big picture. We gained an important weekly SR level when we broke the 10K level (~$9948).
Generally speaking, all important levels once broken need to be tested so we can confirm the direction of the trend.
We did a perfect pullback to the higher 9Ks. Many expected 9.6K to fill the infamous CME gap. But what is the CME gap exactly? I'm not very compelled by the "fill the gap" narrative and I see absolutely no reason for CME gaps to be filled all the time. Gaps are simply symptomatic of the limited trading periods that CME operates on while we have an asset trading 24/7. There is no fundamental reason why these gaps would need to be filled.
With that said, I'm expecting a bit of sideways from here. Drawing a fractal using the latest swing low PA shows a possible outcome. Note however that fractals are rarely repeated 100%. If BTC manages to close the weekly above $10,450 - $10,500 this should give a solid ground for bulls to step in. The next few weeks leading to the US elections will be decisive in this market on many economical and sociological levels.
Keep an eye open on the SPX and stocks market. This dump was initiated by the weakness of the traditional market after favorable employment reports came out of the US and the US Dollar started to gain strength (look at the DXY chart). We are still very much correlated to stonks so further pain in equities could tank Bitcoin price as people run for cold hard fiat money, at least temporarily. On the longer term, monetary policies are still very much bullish for high-yield assets like Gold and Bitcoin.
Patience and strong hands will be rewarded.
The weaks will be devoured.