We have to admit it. Every time we see the whole market in the red, it creates a bit of 2018 flashback. We are pushing back against our fears. We are going to rely on the tactical charts to see if Bitcoin ( BTC ) can hold near 8700. If it does, a tactical rally could come soon.
We are all just waiting. If falling rates help Bitcoin ( BTC ), help may be on its way soon.
Sometimes, the key to the next trade is to focus on significant pivot levels and then see what happens. 8750 is such a level.
Bitcoin ( BTC ) has to stay above 8500. That is the location of the 50-day moving average. If that level holds, chances increase that Bitcoin ( BTC ) follows alts and goes up to 10k. If Bitcoin ( BTC ) continues to fall, the fall could be dramatic. The target could be 6k.
This could be a great buying opportunity in Bitcoin ( BTC ). If it isn't, then you have to stop out and wait for another chance.
If Bitcoin ( BTC ) can survive a rise in the Dollar in the FX markets and remain in its range, that would be an excellent sign. Generally speaking, we think it pays off to occasionally look at legacy markets for clues on crypto.
Since Bitcoin is not backing off, we are naturally staying positive. We think the upside action may lie elsewhere in the crypto space.
We are ok with the fact Bitcoin ( BTC ) is bound in a range. We believe it gives other cryptos a chance to rally vs. Bitcoin ( BTC ). It's not alt season, but alts can do better in this environment.
We can dare to dream. China supporting crypto and blockchain and U.S. politicians overtly redistributing wealth, AND printing money are the fundamental backbone of the Elliot scenario.
Coming up with good pivot points involves trial and error. Let's see how well 9420 works as a pivot , and we can go from there.
With a 15% spike in one day, we have to take a step back and observe.
More than likely traditional portfolio managers are going to sell out their Bitcoin ( BTC ) and take their losses. This sets up at least one more leg down.
If Bitcoin ( BTC ) breaks 7800, and the returns to that level and fails, the next target could be as low as 7400.
We would not buy any Bitcoin ( BTC ) right here. Bitcoin ( BTC ) has to prove it can hold support and bounce hard. If Bitcoin ( BTC ) continues to go down, then the chart tuns really ugly.
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