No sighs of recovery yet
Morning folks,
Currently BTC follows to our basic scenario that we've announced after collapse has happened. Market should fluctuate in a range as it has happened after May sell-off. There are few reasons for that as fundamental as technical. Technically - market has solid bearish momentum that should be faded first. Recent performance makes us think that BTC still could creep lower and even re-test the low that is set now. Fundamentally - market is entering into new environment of tighter Fed policy that happens for the first time in its history. And nobody can predict how BTC reacts. First test looks not very optimistic as BTC was sold off as well as some 2nd quality risky asset.
Since within few days another Fed meeting comes and we think that hawkish comments are highly likely, BTC could get 2nd hit. Right now price action on 1H chart doesn't show any signs of recovery. This is mostly indecision behavior.
That's being said, in current situation we do not see something else, except potential "222" Buy pattern around 45-45.5K area. This is something, at least, that could provide more or less acceptable background. Besides, 45 is closer to 41k lows then current price action.
If we get strong downside action - this pattern should be ignored. Only gradual downside retracement, in the way how we see it now will be acceptable for this setup.
Currently BTC follows to our basic scenario that we've announced after collapse has happened. Market should fluctuate in a range as it has happened after May sell-off. There are few reasons for that as fundamental as technical. Technically - market has solid bearish momentum that should be faded first. Recent performance makes us think that BTC still could creep lower and even re-test the low that is set now. Fundamentally - market is entering into new environment of tighter Fed policy that happens for the first time in its history. And nobody can predict how BTC reacts. First test looks not very optimistic as BTC was sold off as well as some 2nd quality risky asset.
Since within few days another Fed meeting comes and we think that hawkish comments are highly likely, BTC could get 2nd hit. Right now price action on 1H chart doesn't show any signs of recovery. This is mostly indecision behavior.
That's being said, in current situation we do not see something else, except potential "222" Buy pattern around 45-45.5K area. This is something, at least, that could provide more or less acceptable background. Besides, 45 is closer to 41k lows then current price action.
If we get strong downside action - this pattern should be ignored. Only gradual downside retracement, in the way how we see it now will be acceptable for this setup.
ForexPeaceArmy BTC analytics :
forexpeacearmy.com/r/author/11/sive-morten-blog
FX, GOLD:
forexpeacearmy.com/community/forums/sive-morten-currencies-and-gold-video-analysis.122/
forexpeacearmy.com/r/author/11/sive-morten-blog
FX, GOLD:
forexpeacearmy.com/community/forums/sive-morten-currencies-and-gold-video-analysis.122/
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