BTC rebounded as expected to around 78,000. Next—will it go up or down?
Yesterday, I posted to remind everyone: CVD hit a new low, yet the price didn’t make a new low. Around 75,000, BTC formed a bullish divergence. The bullish targets were around 77,300 and 78,000. As it turned out, BTC surged to about 77,700 at its highest—perfectly hitting the two targets I mentioned yesterday near 77,300 and 78,000. You could say this round of price action matched my expectations perfectly again. If you’ve been reading my posts, you probably have been making money lately, and we also perfectly got into this long position.
So after this, will it rise or keep falling?
First of all, I believe the BTC pullback may not be over yet. 75,000 probably isn’t the low for this cycle. I expect it to continue dropping, breaking below 75,000 and heading toward around 74,000—or even lower. The reason BTC was able to rebound to around 78,000 is that a bullish divergence appeared at the bottom. Also, during this drop from around 79,500, some people chased shorts. But the real short-chasers started chasing shorts around 78,000. That’s why if it can rebound back to the 78,000 area, it can at least stop out the shorts or force profitable traders to exit early. This is also why I believe the rebound to around 78,000 can make the downside less heavy.
Summary: I think over the next couple of days it may continue to trade in a range. In the short term, there probably won’t be another sudden breakout higher or crash lower. After this consolidation, it should continue downward, breaking below the 75,000 support, heading to 74,000—and possibly even lower.
Yesterday, I posted to remind everyone: CVD hit a new low, yet the price didn’t make a new low. Around 75,000, BTC formed a bullish divergence. The bullish targets were around 77,300 and 78,000. As it turned out, BTC surged to about 77,700 at its highest—perfectly hitting the two targets I mentioned yesterday near 77,300 and 78,000. You could say this round of price action matched my expectations perfectly again. If you’ve been reading my posts, you probably have been making money lately, and we also perfectly got into this long position.
So after this, will it rise or keep falling?
First of all, I believe the BTC pullback may not be over yet. 75,000 probably isn’t the low for this cycle. I expect it to continue dropping, breaking below 75,000 and heading toward around 74,000—or even lower. The reason BTC was able to rebound to around 78,000 is that a bullish divergence appeared at the bottom. Also, during this drop from around 79,500, some people chased shorts. But the real short-chasers started chasing shorts around 78,000. That’s why if it can rebound back to the 78,000 area, it can at least stop out the shorts or force profitable traders to exit early. This is also why I believe the rebound to around 78,000 can make the downside less heavy.
Summary: I think over the next couple of days it may continue to trade in a range. In the short term, there probably won’t be another sudden breakout higher or crash lower. After this consolidation, it should continue downward, breaking below the 75,000 support, heading to 74,000—and possibly even lower.
