Bitcoin is currently re-testing the significant supply region from December 2021, where price spent almost a month failing to move higher after the initial move down from ATH.
Since putting in a final bottom in late 2022, Bitcoin has rebounded strongly along with other risk assets. However, if this trend has been a corrective ABC move, the pattern looks near enough to complete to start looking for a strong reversal from this region for confirmation. The c wave price has reached the typical corrective fibonacci extension resistance range from the a wave, and at a low timeframe has reached a 3.0 extension of the wave 1 of c.
If the current trend is part of a new leg higher, price should easily reach 76k which would be the 1.618 extension from the initial sequence off the low.
The conservative trading approach would be to take partial or full profits on longs at these levels, respecting the important price resistance and risk of a double top, and wait for price to confirm a breakout over prior ATH to re-enter a long position.
The downside risk, if price is currently filling out a corrective ABC retrace, would be a > 80% loss to re-visit 10.2k or lower before price would ultimately find a durable bottom.
Since putting in a final bottom in late 2022, Bitcoin has rebounded strongly along with other risk assets. However, if this trend has been a corrective ABC move, the pattern looks near enough to complete to start looking for a strong reversal from this region for confirmation. The c wave price has reached the typical corrective fibonacci extension resistance range from the a wave, and at a low timeframe has reached a 3.0 extension of the wave 1 of c.
If the current trend is part of a new leg higher, price should easily reach 76k which would be the 1.618 extension from the initial sequence off the low.
The conservative trading approach would be to take partial or full profits on longs at these levels, respecting the important price resistance and risk of a double top, and wait for price to confirm a breakout over prior ATH to re-enter a long position.
The downside risk, if price is currently filling out a corrective ABC retrace, would be a > 80% loss to re-visit 10.2k or lower before price would ultimately find a durable bottom.
Trade active:
BTC pushed into the upper end of the expected resistance region. The 5th looks to be working on completing the upside structure. The lower timeframe pattern has a fib 2.618 ext resistance around 58.2k, so it is possible to see more extension forwards that level.
Monitoring for an actionable reversal structure over the coming days.
Monitoring for an actionable reversal structure over the coming days.
Trade active:
BTC pushed all the way to prior ATH, before being quickly rejected. The low timeframe rejection has setup a possible reversal structure. A short position is actionable here with stop at the recent all time high with defined risk
