Yesterday Bitcoin gave a good reaction from the $86k area (Weekly Open.) However, we can see that for now BTC is in the process of making Lower Highs. There is also very strong resistance above $88k so this makes long positions extra risky here.
I am still looking for a break of resistance but also have in mind the strong chance of more downside- The CME gap below $85k has still not been filled! One way or another a bigger move is coming.
Patience is key for me here. Bitcoin does continue to look strong but it is sitting right under $88.5k resistance. I will become interested in entries when BTC flips $89k, or a retest towards $85k.
Altcoins are starting to perform well with Bitcoin consolidating. Let's see what we get today.
Yesterday Bitcoin attempted to make a push for $89k but was met with resistance at the expected resistance zone. We had been watching the $87.6k - $88.9k zone for a few days which saw around a 2% rejection overnight. BTC is building strength again at the moment, and I will be watching for a 4hr close above $88.5k which I think will see a move to $90k+.
To the downside, the weekend momentum created a CME gap which would need the price to retrace to $84.4k if it is to fill.
Bitcoin showed good strength heading into the weekly close and that has continued this morning as we approach the US stocks opening. Over the next 24-48 hours bulls need to see $85.5k held at the daily closes. This is the current Daily EMA200, and after it was reclaimed yesterday it will be looking to hold as support. A warning for those opening fresh longs here, BTC is pushing into big resistance between here and $89k.
We also need to be aware that strong moves before US stock open are often met with a move down later in the day. $BTC