Yesterday we got a bullish reversal candle on the BTC daily chart and today we see some follow through. As always this has many people over excited as now the expectation is that we continue higher.
I had originally had a downward target of around 7000 (Blue Box) which we did not quite land on. It is still very possible that we will fall lower as we have no true confirmation of upside continuation.
The general view in the market is that BTC will not drop below 6000 and that this level is the new base low for the market. I also share this view but it is still possible that we go lower.
In an older post I highlighted that this purple support line on the chat above is what I saw as the market fair value. This is the BTC price that the market should be reflecting at this time. As long as we trade above this line I am still bullish on BTC.
Once again we need to see a close above and a re-test of the downward trendline. I would also feel more comfortable if were to be trading above the RED 100EMA on the 4hour time frame.
Remember that right now er are trading within a range of 6000-12000. Although this range is very slowly narrowing as if to form an equilibrium pattern, it does not mean that in the coming weeks we will see a new moon shot. Do not pay attention to poor analysis projecting outrageous price levels.
BTC dominance is still following that grind higher, now at 44%. I still have 50% as my target but I may increase that to 60% depending on market conditions.
A lot of double digit gains today so a lot of excitement but remain cautious.
I would love to hear your own thoughts on the market so please let me know in the comments.
