I will continue being skeptical and cautious until be clear the $10500 top, however, I can't deny that the bull do seem to have gained strength and the market sentiment seems to be very bullish (even though contributes to my skepticism).
I've decided to analyse the 1H chart to determine the probable paths and obstacles we may encounter on the way.
First see have the $9200 local top. We have experienced two consecutive dumps at the specific level. These dumps have all the characteristics of big players. Now that we have a very well defined level of high liquidity, this zone will be of high interest to big players wanting to enter short positions. Expect a big struggle with very high volume around this zone, perhaps you could step out and observe once we reach this level and make sure things look OK before deciding to jump back in. We can also see an ascending triangle forming, which adds weight to the bullish case.
Then we'll enter the real battle zone. Naturally, bears don't want price to reach above $10500, but most importantly, as volume increases and buy market orders get bigger and bigger the closer we get to $10500, there will probably be plenty of sell orders to fill and a strong push down from the big bears, but we should see an equally strong push from the bulls that will benefit from the bears market orders in the end.
Once we are able to cross the $10500 barrier and form that higher high, we may see an exponential rise in price, perhaps a considerable rise, but eventually there will have to be a big pullback due to bulls taking profit plus bear pressure. This dump will scare a few, but at the point the most likely scenario is that we'll resume our journey towards another higher high.
We shall see in the next few days how all of this pans out, if we are really bullish, or if this is just a mirage and we still need to form a first higher low before we can move up for real.
Cheers!
I've decided to analyse the 1H chart to determine the probable paths and obstacles we may encounter on the way.
First see have the $9200 local top. We have experienced two consecutive dumps at the specific level. These dumps have all the characteristics of big players. Now that we have a very well defined level of high liquidity, this zone will be of high interest to big players wanting to enter short positions. Expect a big struggle with very high volume around this zone, perhaps you could step out and observe once we reach this level and make sure things look OK before deciding to jump back in. We can also see an ascending triangle forming, which adds weight to the bullish case.
Then we'll enter the real battle zone. Naturally, bears don't want price to reach above $10500, but most importantly, as volume increases and buy market orders get bigger and bigger the closer we get to $10500, there will probably be plenty of sell orders to fill and a strong push down from the big bears, but we should see an equally strong push from the bulls that will benefit from the bears market orders in the end.
Once we are able to cross the $10500 barrier and form that higher high, we may see an exponential rise in price, perhaps a considerable rise, but eventually there will have to be a big pullback due to bulls taking profit plus bear pressure. This dump will scare a few, but at the point the most likely scenario is that we'll resume our journey towards another higher high.
We shall see in the next few days how all of this pans out, if we are really bullish, or if this is just a mirage and we still need to form a first higher low before we can move up for real.
Cheers!