increase from the previous week.
As a reminder, price broke through the previous all-time high set at $3,028 on
October 28th 2019 and we are yet to see a pullback.
If you notice all the rallies highlighted on the chart, they were all followed by a pullback or consolidation.
The previous rally was 7% before a pullback occurred and the current rally has risen by 8% so far.
If this rally is similar to the previous one then a pullback may be coming soon but
we can never predict the market's next move.
Price may have other ideas and continue to rally for some time before we see any exhaustion in price.
What we can do is be prepared in case a pullback develops and anticipate where price may pull back to.
We have the support from the previous all-time high at $3,028 which is a strong level of support.
Below this, we have the $3,000 round number psychological . The move up from the
October 3rd low has been linear so it wouldn’t be foolish for us to anticipate a pullback happening soon.
If we have a break and close above the November 7th high at $3,097, it will confirm a continuation
to the upside. We must now allow price to dictate the next move to determine our next actions.
See below for more information on our trading techniques.
As always, keep it simple, keep it Sublime.