Recently, Bitcoin and the crypto market as a whole have seen a solid run-up from the lows we experienced following the crash in May. In order to move towards $100K+, we need interaction with the bull market support band.
In September markets typically see some kind of retracement and in BTC's case I believe with the bounce we have received off the 20 day EMA, a retracement of 15-20% could tie in nicely with the strong levels of support in the $42K region, the 0.382 on the Fibonacci retracement(from the previous peak to low), and the 55 day EMA.
If we do see this pullback, the strong levels of support coupled with the bull market support band can see BTC find footing in the perfect spot for crypto investors. This can potentially lead us to gain momentum and see BTC reach a new ATH over the duration of the next 6 months or more.
I think the probability of a dead cat bounce in this scenario is less likely compared to previous crashes, BTC has been below the support band for 3 months in an accumulation zone. Previous crashes have seen numerous relief rallies immediately after provoking volatility, uncertainty and ultimately resulting in some form of capitulation. This period of accumulation seems to have more structure. This may be due to increased institutional investment and Wyckoff distribution, as seen through the recent peak being extended over months rather than a blow-off top and the recent accumulation area.
Let me know what you think.
In September markets typically see some kind of retracement and in BTC's case I believe with the bounce we have received off the 20 day EMA, a retracement of 15-20% could tie in nicely with the strong levels of support in the $42K region, the 0.382 on the Fibonacci retracement(from the previous peak to low), and the 55 day EMA.
If we do see this pullback, the strong levels of support coupled with the bull market support band can see BTC find footing in the perfect spot for crypto investors. This can potentially lead us to gain momentum and see BTC reach a new ATH over the duration of the next 6 months or more.
I think the probability of a dead cat bounce in this scenario is less likely compared to previous crashes, BTC has been below the support band for 3 months in an accumulation zone. Previous crashes have seen numerous relief rallies immediately after provoking volatility, uncertainty and ultimately resulting in some form of capitulation. This period of accumulation seems to have more structure. This may be due to increased institutional investment and Wyckoff distribution, as seen through the recent peak being extended over months rather than a blow-off top and the recent accumulation area.
Let me know what you think.