Hey team,
On days like today where you flick open your watch list and are greeted by a sea of red, it's easy to lose track of the bigger picture.
With markets still simply following Bitcoin, right now the mack-daddy of crypto markets is still all that matters.
You may remember that the last time Bitcoin was pulling back, I spoke about the price action on the blog.
Before I share an updated chart, I just wanted to quote the following from the blog I've linked to above.
So we have all this doom and gloom, yet price hasn't even retested (let alone broken through) a single daily support/resistance zone.
Jeez guys, let's all chill out here.
Okay?
It really doesn't matter how price moves between daily support/resistance zones.
The price action in between is nothing but noise.
With that in mind, lets now take a look at where Bitcoin is currently sitting in relation to such zones.
BTC/USD Daily:
After printing a new all time high, price has now pulled back underneath previous resistance.
While this does open us up to pulling back to 40K (without any obvious daily zones in-between), the fact price didn't technically print a double top is actually a good sign for bulls.
I actually quite like the look of this price action as I can see this little move back below previous resistance as nothing more than a stop hunt before price ultimately rips higher again.
To me, the price action in this rally still looks healthy and ultimately quite sustainable.
If price turns back up and reactivates the 60K level as support, I'd have no problems using it as an in-play daily zone to manage my risk around when buying.
What do you think?
Best of probabilities to you,
Dane.
FOREX BROKR | LeoFinance Blog
Daily market analysis.