This post is focused on the Daily but includes info on the Weekly.
I'm making another long term play here much like I did last summer (I said Bitcoin would be retesting $20k by winter). Looking at the Daily instead of the Weekly we can see bear volume had been increasing as we reached the TEMPORARY TOP. Flipping over to the Weekly you'll see that the last 2 candles show lots of selling pressure. The RSI on the Daily is looking good but on the Weekly it's at 77.
Option 1:
The purple lines indicate what the price action may look like. We'll get a low volume green candle next week before further rejection as news regarding tax season and regulations start to flood the news. Bitcoin then ranges in this zone until the summer before kicking off.
Option 2:
We retry for new highs, get rejected, and form a DOUBLE TOP on the Weekly. At this point we'll probably do a Weekly retest of support.
Tax season is almost upon us for 2021 and the IRS will be looking for everyone who's invested in crypto. That said, institutional investors ARE in now which has brought more legitimacy along with services such as Square and Paypal integrating Bitcoin into their systems. With these big players entering the sphere along with the possible Coinbase IPO we will start to see some regulations come down over the next year or so.
I'm placing my bets on Option 1. I haven't sold anything and am just buying at times of my choosing aka sell-offs on the Daily and Weekly. What goes up must come down.
I'm making another long term play here much like I did last summer (I said Bitcoin would be retesting $20k by winter). Looking at the Daily instead of the Weekly we can see bear volume had been increasing as we reached the TEMPORARY TOP. Flipping over to the Weekly you'll see that the last 2 candles show lots of selling pressure. The RSI on the Daily is looking good but on the Weekly it's at 77.
Option 1:
The purple lines indicate what the price action may look like. We'll get a low volume green candle next week before further rejection as news regarding tax season and regulations start to flood the news. Bitcoin then ranges in this zone until the summer before kicking off.
Option 2:
We retry for new highs, get rejected, and form a DOUBLE TOP on the Weekly. At this point we'll probably do a Weekly retest of support.
Tax season is almost upon us for 2021 and the IRS will be looking for everyone who's invested in crypto. That said, institutional investors ARE in now which has brought more legitimacy along with services such as Square and Paypal integrating Bitcoin into their systems. With these big players entering the sphere along with the possible Coinbase IPO we will start to see some regulations come down over the next year or so.
I'm placing my bets on Option 1. I haven't sold anything and am just buying at times of my choosing aka sell-offs on the Daily and Weekly. What goes up must come down.