Looking at the Bitcoin 2-day chart, the focus is on 8587. That level is the 50% retracement of the big part of this year's uptrend. If BTCUSD can achieve a close of a 2-day candle above 8587, then the wave work shows a move to 16k is very likely. Bulls could then pile in on dips.

Conversely, if BTCUSD fails badly at 8587, that would be a very worrisome sign.

Bottom Line: For the rest of this week, we have to watch what happens at 8587 in BTCUSD very closely. Keep positions sizes small until the chart read is crystal clear.

DISCLOSURE: Token Metrics is a regular publication of information, analysis and commentary and does not provide individually tailored investment advice.  The Token Metrics team has invested and advised in many blockchain companies. A complete list of the team disclosures, advisory roles and current holdings can be viewed here: https://blog.tokenmetrics.com/disclosures/.