#017
The Litmus Test.
Hello, fellow Bitcoin explorers.
This Weekly Open marks our first close back above the Weekly 200 Moving Average in the past 7 weeks. Quite the feat.
Good news for sentiment. Both major players and Bitcoin enthusiats can rejoice. Let's not celebrate too soon, as there are far tougher battles ahead.
Bulls must show commitment, as the current momentum could lead a potential reversal. To further the ongoing relief rally, they will need to hold grounds above key levels.
Trend, Support and Resistance, Moving Averages
Have you read my previous newsletter, “The Return of the Dove”?
There, I outlined that the next logical move were retests.
One above, one below.
When retesting the previous top this weekend, claiming the swing high failed.
A double top pattern printed. Bitcoin is now retesting the lower zone of interest.
Visiting $22,500 one more time here is pretty crucial.
Major support needs confirmation.
If we can hold the previous range high and the 200 Weeks moving average, it’s go time.
The next area of interest will be $27,000 for most players with little to no hesitation. Last retest failed, and price dipped all the way to $21,000.
Even if I outlined this as a great risk:reward area, this must not happen again.
It would show too much indecision in the market. Momentum would fade. The lowest this can go in my view to support potential further momentum is $21,800.
As we are making higher lows, with a double top ceiling ahead, we are a few pushes away from near term trend reversal. Boiling up really.
Bulls must run a few more yards for a touchdown. I’m rooting for them.
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This is not financial advice.
Please always do your own research.