What perspective can we gain from looking at BTC at this time?
Price action is bullish. Fundamentals are bullish. We are making higher highs, and lower lows which is indicative of a steady uptrend. I know traders are worried about divergences currently being seen on popular indicators such as the MACD. I'm sure some have taken profits due to this and the PI Cycle indicator showing a cross as well. Please remember that divergences don't always work, and no indicator is 100% accurate. However, it's clear that we are not yet in a euphoric phase of the market. So let's create some simple scenario's which will have us prepared for either direction the market may take.
Bull Scenario - We are consolidating, if we remain above 60k it's very bullish, and the next leg up is to be expected soon. The longer price remains confined to a tight range the stronger it will move once released.
Bear Scenario - If we break below 60k that would be a relatively bad sign for bulls, as this gives up an important price area. The battle zone is currently at 60k. Below this would clear weak hands. - The next support would be the trend line. If price breaks below, then bears would be more in control at that moment. I can imagine we will see some panic selling at this point which will push price lower, however bulls will step in to defend and buy at what they believe are discounted prices. - The final area of support is the 56k level, if price trades below and with conviction, this would violate the current uptrend and be a strong bearish signal.
what do you think about May. I think the correction will happen during May. Possibly for 2 or 3 weeks.
BigAccount
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@JuneZzang, Why do you think May and why 2 or 3 weeks? I prefer not to guess specific dates as there is no possible way to know with any meaningful precision. We know corrections occur as they are natural market rhythms, but when is anyones best guess. I can only trade what I see right in front of me, and I think this is the most honest way to go about it. Everything else is just making a prediction, and while it can be fun to speculate when a market will correct or crash, it's just not conducive to trading.
JuneZzang
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@BigAccount, ok sounds fair. Thanks for the reply.