Bitcoin - Weekly Analysis
Price action has forming the same patterns during its entire run up, as you can see illustrated by the resistance trendlines.
The current pattern is a run up, fade from profit taking, and more buying steps in bringing it to a new high. Rinse and repeat.
Currently, we will have to see how the price action reacts the current trendline support.
Given that there is a Kumo twist and the price hasn't sold off to test it, could indicate a retest at low levels of support.
If the current trendline support fails, then that's how we can be thinking about near term downside.
On the flip side, if any news such as a positive court case or ETF approval could act as a catalyst event for buying.
I am not saying that is going to happen, rather we must be mindful of the variables and dynamics of the situation.
The trendline test will give us more indication of price directionality in the near term. So we will be watching how the current PA and support trend interact over the next week.
Based on that interaction, I've given scenarios for both directions and we will have to be agile and unbiased in the short term, and let the price tell us what it is going to do.
Sometimes short term forecasting neutrality is the perspective you want. You don't always have to force a binary choice in an unclear scenario.
The current pattern is a run up, fade from profit taking, and more buying steps in bringing it to a new high. Rinse and repeat.
Currently, we will have to see how the price action reacts the current trendline support.
Given that there is a Kumo twist and the price hasn't sold off to test it, could indicate a retest at low levels of support.
If the current trendline support fails, then that's how we can be thinking about near term downside.
On the flip side, if any news such as a positive court case or ETF approval could act as a catalyst event for buying.
I am not saying that is going to happen, rather we must be mindful of the variables and dynamics of the situation.
The trendline test will give us more indication of price directionality in the near term. So we will be watching how the current PA and support trend interact over the next week.
Based on that interaction, I've given scenarios for both directions and we will have to be agile and unbiased in the short term, and let the price tell us what it is going to do.
Sometimes short term forecasting neutrality is the perspective you want. You don't always have to force a binary choice in an unclear scenario.
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