The bullish momentum has slowed once again, but that does not mean the bears are back in control. Yet. The 6565 area support is still in play along with a newly established inside bar . In this report I will evaluate both sides in an attempt to offer some perspective in terms of reasonable expectations.
On the bear side, the trend line is still clearly intact. Price needs to push 7K in order to prove a broader recovery is in effect. With the lower high made at 6736, a lower low into the 5956 reversal zone is within reason. A break of the 6300 low will signal that the next leg lower is in effect. Certainly something to be aware of.
On the bull side, the previous candle is an inside barwhich can act as a long trigger as well. If the mid 6600’s get taken out, a push to the high 6Ks to low 7Ks is also within reason. What gives this market abullish argument is the price location.
Fluctuating between 6565 and 6005 which are two major support levels, in conjunction with the broad support zone overlap. 8171 to 4983 is a very wide zone, but it is the .618 support area relative to the entire bullish structure going back to the 150 lows.
Knowing the relevance of this large area offers perspective in terms of inventory building, not short term swing trading. If you are going to invest, or accumulate inventory, this range of prices is the most attractive area compared to buying at 10K for example.
At S.C., we have been accumulating other coins along with BTC and writing about it. We also have a swing trade in ETH, so we are still betting on the long side. A ton of patience and flexibility is required though.
Our short term plan is to shave off profits IF this market can come close to testing the bearish trend line . Any push into the extreme lows, like the 5656 or 5669 reversal zones will also prompt additional inventory building. Check S.C. for updates.
This market condition is quite harsh. Buying volume will be lower, and recoveries slower, but it does not mean the long term merit of these markets has changed. Only the sentiment and excitement of the crowd has. Perfect for the contrarian who buys when the crowd unloads, and then sells back to them when they get excited at extreme highs.
Part of being able to hang on to ugly markets is believing in the long term, and also being able to lose. I can’t emphasize how important the losing part is. I had to learn the hard way that if you can’t lose, you can never win. If safety is a big concern, you are in the wrong markets. It is that mentality that separates the strong hands from the weak.
Note: All analysis done here in no way constitutes as financial advice always do your own research.
Credit: Trading view
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