Bitcoin in Solid Support Territory

With Bitcoin showing signs of life over the last month, it was hard to image we would get here to the $42k-$45k area as I called last month in the last 2 videos.

We got here a bit early, but here we are.

Elon's tweets were just a catalyst for where the market wanted (and needed) to go. I feel it needed to re-test at least the midline of the large up candle we saw on February 7th, 2021, which we saw in yesterday's selloff. But we could still see another leg down to the $40k area, which would not surprise me to see in today's afternoon or overnight session, after the market breathes a sigh of relief that 'the worst is over'...

Because I don't think we've seen true capitulation yet.

So I'd prepare for one more selloff and nasty leg down to put in a bottom, even if just a big wick down to the $40k level (or lower) but a fast bounce and the beginning of the 2nd half of the 2021 bull run. On chain metrics indicate bullish behavior behind the scenes.

The good news is, BTC.D is at levels that historically always trigger a major bull rally in Bitoin as money flows back in and BTC regains dominance. There are other market factors at play here obviously such as 2 contenders waiting in the wings to be #1 (ETH and ADA) and the fact that like it or not, the crypto markets are now more influenced by the derivatives markets (Futures and Options) where more money is at play.

So we'll see what happens, but my guess is we head higher from here in the short term. On the weekly chart BTC wicked down perfectly to retest the $42k area which can be clearly seen on the Weekly chart, and on a monthly we can still see this month as a Red candle (which I feel is important to fuel the next segment of a monster Bitcion rally going into the end of 2021.

I think we'll trend higher here, but not see new BTC highs until June possibly July. Hopefully there's still some room for Alt season gains along the way, before all the money starts flowing back into BTC. With ETH and ADA getting so much attention, they could continue to see strong buying pressure from here.