Relief into Halving?
Over the weekend Bitcoin suffered a set back as it attempted a breakout above 10,0000. The weekly close will likely result on the rally officially ending. The proof: The weekly candle (not shown) ended in a reversal on spot exchanges and exhibited the highest since the March 16 weekly candle. Furthermore, the two month old ascending trendline that supported that rally was finally breached (see below).
Price can absolutely rally in the interim. A reason would be the ridiculous Gap that many traders have already pointed out. See the 4-hour Bitcoin Futures chart below.
The picture on lower time frames is an absolutely mess unless you turn the noise off. Here I have the 1-hour line chart of Bitcoin . The king of crypto is exhibiting signing of an pattern reversal. Given that the pattern is on lower time frames, I give it a lower probability in completing and/or reaching its measured target. Trade this pattern with caution, as the risk is still to the downside.
Bitcoin is poised to rebound from whatever low it posts in the short term. So it is very difficult for me to be on the short term. However, that being said I will continue to emphasize that Bitcoin could be in for a lengthly consolidation prior to making any new highs. BTFD and sell the rallies. Bias: BTFD.
Europe Showing Sign of Weakness
Above is the chart of the Euro Stoxx 50 (EU50), an index that is made up of the 50 largest and most liquid stock in the European zone. After a 50% rally off the March low, the EU50 has not been able to reclaim its high. Europe could be signaling a warning for stock market investors and traders that the high may be in. Its a chart to watch! Bias: .
Stars Aligning for Rally to End
Not calling any top here, but I do think it is time to rethink the upside on the tech driven rally. With Bitcoin and now Europe exhibiting weakness, the warning signs are there that the rally is nearing an end. Until then, I'll be playing the relief rallies and promising set ups. Happy trading and talk to you all soon!