Why 7500-8000 is Important for BTC & Why You Should Look at SPY
Hello Traders, today we look at Short and Medium-term analysis of BTC Daily chart.
Short-term:
Contrary to it's designed purpose to act like a safe haven during crysis, BTC is currently moving along with major markets. My take on this is that compared to the Stock markets, Crypto is still very young and small and more than anything fueled by fear and greed.
For the actual range, we will, therefore, need to see which direction SPY takes. BUT! this correlation can slowly fade away as traders adjust to the current situation and start thinking more rationally again.
Medium-term:
At roughly 7500 we have many converging resistance levels which, if broken, will act as new support. If the price establishes at around 7500-8000, this will be a good sign for the bulls. Note that this can take a few weeks, again based on that happens in markets in general.
Watch for manipulations and wait for extra confirmation by daily bar closing prices.
Be safe and trade well,
FINEIGHT team
Short-term:
Contrary to it's designed purpose to act like a safe haven during crysis, BTC is currently moving along with major markets. My take on this is that compared to the Stock markets, Crypto is still very young and small and more than anything fueled by fear and greed.
For the actual range, we will, therefore, need to see which direction SPY takes. BUT! this correlation can slowly fade away as traders adjust to the current situation and start thinking more rationally again.
Medium-term:
At roughly 7500 we have many converging resistance levels which, if broken, will act as new support. If the price establishes at around 7500-8000, this will be a good sign for the bulls. Note that this can take a few weeks, again based on that happens in markets in general.
Watch for manipulations and wait for extra confirmation by daily bar closing prices.
Be safe and trade well,
FINEIGHT team
1) BTC indeed followed the market as foretold when it cleared the upper edge of drawn short-term range and...
2) ...was immediately manipulated, resulting in fake breakout and drop of more than 500 points back.
What to expect next:
Usually after a fake breakout there will be a real breakout to the opposite side. With the stock market poised to go lower this bias is valid.