BTC has yet to fully convince me of a trend reversal. Though in the short term I am bullish, I believe that Bitcoin bulls will falter around $4170 with the completion of this C Wave of an ABC Correction. Before that we have a fairly clear 5 waves down. $4.2k comes up right next to the previous support now resistance line established back in 2015. At this time it is unlikely that the bulls will have the volume or the capacity to break this mark with confidence. It is likely that the bulls will face heavy resistance from the bears who will, once again, regain control of the market trend and push Bitcoin down to the price target of $1600 to complete the move down.
With the current spike and gain in value of Bitcoin over the last few days the R/R is too high for any new long positions. Other traders are likely thinking the same which will allow, and invite bears to open shorts against Bitcoin. In favor of a bullish trend reversal, however, is the US Fed rate hikes that have been announced. This has the potential to see fresh capital flow into cryptocurrencies. Only time will tell, and a monitoring of the market will signal where this will go. Though, as indicated previously with turn downs in the US Stock Market the price of cryptocurrencies has tumbled with it. Will crypto now break this trend or continue to follow in the foot steps of the DJIA? Only time will tell, but the likelihood of a strong bullish move upwards to break the back of the bears from Bitcoin is not the likeliest of options at this time.
A firm break of the $4.2k resistance with a sustainability above this point for 3-days would lend credence to the bulls regaining control of the cryptocurrency market space.
With the current spike and gain in value of Bitcoin over the last few days the R/R is too high for any new long positions. Other traders are likely thinking the same which will allow, and invite bears to open shorts against Bitcoin. In favor of a bullish trend reversal, however, is the US Fed rate hikes that have been announced. This has the potential to see fresh capital flow into cryptocurrencies. Only time will tell, and a monitoring of the market will signal where this will go. Though, as indicated previously with turn downs in the US Stock Market the price of cryptocurrencies has tumbled with it. Will crypto now break this trend or continue to follow in the foot steps of the DJIA? Only time will tell, but the likelihood of a strong bullish move upwards to break the back of the bears from Bitcoin is not the likeliest of options at this time.
A firm break of the $4.2k resistance with a sustainability above this point for 3-days would lend credence to the bulls regaining control of the cryptocurrency market space.