So first things first, two days ago this weekly candle was printed for BTC, also known as a long legged doji which is a very strong indicator of a market reversal of huge shift in momentum.
We have seen these candles before on 4H or 8H timeframes which indicate maybe a small pullback over the next week but in general the longterm momentum will continue.
Seeing this candle on a weekly timeframe indicates a much stronger reversal over the coming month and to shift your bias to look for possible pullback zones as there is no way a candle close like this continues to the upside.
So currently the strongest range of support would be around $6000, this level has been tested multiple times throughout the history of BTC and is probably its most important level.
Firstly this level HAS to hold if we want to stay out of falling back into a bear market. I honestly think this region will not be broken .
Secondly another strong region is $7600, again multiple touches but if this level holds we could prevent PA from going into an accumulation phase between these two levels and just continue with strong upwards momentum.
Thirdly price could break support at $7600 but not break $6000 which would shift momentum into an accumulation zone.
On a lower timeframe we can see price has now dropped below $8000 and looks like bears have now flipped this level into a strong resistance to add short position, also long term support trendline has been broken and bulls just trying to protect this region.
First Tip : Never buy into resistance.
If bulls fail to hold this box range then it will be a sudden drop to around $7200 before we see any support.
Adding long position here would be a terrible idea but also shorting could be bad due to volatility so probably the best position would be to stay flat and hedge against both sides.
Medium term i think we could see more of a pullback back longterm no reason not to continue to be bullish and optimistic.
The Crypto Cactus
About The Crypto Cactus
I’m a price action trader who has been in the crypto space for just over 2 years now, i started trading back in 2017 with a few stocks on the nasdaq index and quickly got bored, jumped into crypto and never looked back.
I really enjoy venture capital and being able to have the ability to invest in startups early and the thrill i finding a hidden gem before anyone else, due to this i love spending time doing fundamental analysis on blockchain projects and finding that hidden gem.
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