Hey everyone, remember the area, in which BTC had a lot of volume? I indicated it on the chart I shared with you 7 days ago. Tbh, I didn't expect BTC to find that kind of support in this area. I was convinced that we would dip lower to the green trend line at around $37K. But then again, BTC tends to surprise us all. The daily close on Monday was very strong. Good overall market conditions led to the ascent we saw yesterday, which broke the current down trend on the daily by moving above $41.570.
However, we are not out of the woods in my opinion. This could only be a "bear market" rally. Don't get me wrong, I'm still not convinced that we are in a "real" bear market. There is just no better way to describe the current impulse in my opinion.
So what is going to happen next?
Honestly speaking, I would like to see a correction from our current impulse in order to gain some rocket fuel at lower levels, preferably around $40.5 - $41K. Even moving below $40.5K and a dip into the 39-ish area would be fine. But after that I would like to see BTC moving above our local high.
BTC is currently testing the MA50, which has acted as resistance in the past. Right now it seems that the MA50 will act as resistance again. This could lead to a correction. In case we'll see one, we definitely don't want BTC to move lower than $38.550 as this would be an indication of the continuation of BTC's downtrend.
On the contrary, flipping the MA50 into support would be a huge step for BTC's move up. Not only would this be a very bullish sign, it would also put BTC into an area, where there has been a lot of volume over the past 110 days, which should give us enough buying power to move BTC higher. Once the MA50 is broken, we need to watch out for the area, in which the two red trend lines can be found. Breaking above them would be an ultra-bullish sign, which could lead BTC towards $50K.
By now it should have become clear that BTC is moving within an ascending channel this year, which is indeed a bullish pattern. But this will not last forever. So as we are moving on, it becomes more likely that BTC will break out of this channel at some point. This is something we need to observe.
However, we are not out of the woods in my opinion. This could only be a "bear market" rally. Don't get me wrong, I'm still not convinced that we are in a "real" bear market. There is just no better way to describe the current impulse in my opinion.
So what is going to happen next?
Honestly speaking, I would like to see a correction from our current impulse in order to gain some rocket fuel at lower levels, preferably around $40.5 - $41K. Even moving below $40.5K and a dip into the 39-ish area would be fine. But after that I would like to see BTC moving above our local high.
BTC is currently testing the MA50, which has acted as resistance in the past. Right now it seems that the MA50 will act as resistance again. This could lead to a correction. In case we'll see one, we definitely don't want BTC to move lower than $38.550 as this would be an indication of the continuation of BTC's downtrend.
On the contrary, flipping the MA50 into support would be a huge step for BTC's move up. Not only would this be a very bullish sign, it would also put BTC into an area, where there has been a lot of volume over the past 110 days, which should give us enough buying power to move BTC higher. Once the MA50 is broken, we need to watch out for the area, in which the two red trend lines can be found. Breaking above them would be an ultra-bullish sign, which could lead BTC towards $50K.
By now it should have become clear that BTC is moving within an ascending channel this year, which is indeed a bullish pattern. But this will not last forever. So as we are moving on, it becomes more likely that BTC will break out of this channel at some point. This is something we need to observe.