BTC dropped to the 83,000–84,000 area as expected. What happens next—will it rise or fall?
Recently, I’ve posted multiple times to remind everyone. I said that there would be a pullback at 87,300, and I also told you in the live stream that there would be a pullback here. I clearly spelled out the pullback direction: at 87,300, it would form a second-high at around 87,200 and then start the pullback. The pullback target was 83,000–84,000. The price action turned out exactly as I said—there was not even the slightest deviation. Ultimately, it pulled back from around 87,200 to about 83,400, with zero error. Not only did I give the direction, our short position from 86,800 also exited at the 84,200 take-profit, capturing 2,600 points. You could say my words and actions were completely consistent. This move was really executed perfectly.
So where will BTC go next? First, BTC found a floor around 83,400 and showed a bullish divergence. That means there should be a rebound. Where will it rebound to? The first level—I believe it will rebound to around 85,000. During this round of decline, there was a gap left around 85,000. Most likely, today it will come back to fill that gap. But what we need to focus on today is what happens after the 85,000 gap is filled—that will be the key. Yesterday’s selloff was high-volume on both the 4-hour and 1-hour charts: the largest volume drop on the 4-hour chart in the past week, and the largest volume drop on the 1-hour chart in the past month. Normally, with this kind of volume, price could weaken. But here we’re seeing a bullish divergence. So we need to be extremely cautious.
If it can hold above 85,000, then I think it will break through the 87,300 new highs and run toward 88,000. But if it only comes up to test and tap the liquidity, then falls back down, the next move would be to drop to 82,500.
So today coming to 85,000 is the most likely scenario. Whether it can hold above 85,000 will determine the peak of the rebound. That’s why 85,000 is the watershed level for today.
Recently, I’ve posted multiple times to remind everyone. I said that there would be a pullback at 87,300, and I also told you in the live stream that there would be a pullback here. I clearly spelled out the pullback direction: at 87,300, it would form a second-high at around 87,200 and then start the pullback. The pullback target was 83,000–84,000. The price action turned out exactly as I said—there was not even the slightest deviation. Ultimately, it pulled back from around 87,200 to about 83,400, with zero error. Not only did I give the direction, our short position from 86,800 also exited at the 84,200 take-profit, capturing 2,600 points. You could say my words and actions were completely consistent. This move was really executed perfectly.
So where will BTC go next? First, BTC found a floor around 83,400 and showed a bullish divergence. That means there should be a rebound. Where will it rebound to? The first level—I believe it will rebound to around 85,000. During this round of decline, there was a gap left around 85,000. Most likely, today it will come back to fill that gap. But what we need to focus on today is what happens after the 85,000 gap is filled—that will be the key. Yesterday’s selloff was high-volume on both the 4-hour and 1-hour charts: the largest volume drop on the 4-hour chart in the past week, and the largest volume drop on the 1-hour chart in the past month. Normally, with this kind of volume, price could weaken. But here we’re seeing a bullish divergence. So we need to be extremely cautious.
If it can hold above 85,000, then I think it will break through the 87,300 new highs and run toward 88,000. But if it only comes up to test and tap the liquidity, then falls back down, the next move would be to drop to 82,500.
So today coming to 85,000 is the most likely scenario. Whether it can hold above 85,000 will determine the peak of the rebound. That’s why 85,000 is the watershed level for today.
