You've heard of running with the bulls in Spain. In crypto, we have the running of the stops.
In our view, the recent decline in Bitcoin and the new low last night has been nothing more than a giant stop hunt. The mini-crash below both the 200-day and the 50% retracement of the recent rally (8500) has flushed out weak longs and has set Bitcoin up for what we think could be a mighty up move.
The key will be for Bitcoin (BTC) to recover above 8550. It will also be necessary for Bitcoin to stay above that level. A rally that fails at 8550 would be a negative sign.
Bottom Line: Being constructive Bitcoin is a habit we can't kick. We think the recent mini-crash has made people too cautious. If Bitcoin gets above 8550, people may panic and rush back in just as quickly as they rushed out. Elliot wave work shows a move above 8550 could trigger a move to 16k.
In our view, the recent decline in Bitcoin and the new low last night has been nothing more than a giant stop hunt. The mini-crash below both the 200-day and the 50% retracement of the recent rally (8500) has flushed out weak longs and has set Bitcoin up for what we think could be a mighty up move.
The key will be for Bitcoin (BTC) to recover above 8550. It will also be necessary for Bitcoin to stay above that level. A rally that fails at 8550 would be a negative sign.
Bottom Line: Being constructive Bitcoin is a habit we can't kick. We think the recent mini-crash has made people too cautious. If Bitcoin gets above 8550, people may panic and rush back in just as quickly as they rushed out. Elliot wave work shows a move above 8550 could trigger a move to 16k.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.