The recent price action created 2 new bullish signals for Bitcoin:
- Yesterday's move below $7,700 was a classic "Bear Trap", which is basically a strong (fake) bear signal. Bear traps cause a lot of extra volume (the fake signal generates a lot of sells and shorts that will further have to correct their position).
- Today's strong volume and rise above $10,350 are well above the breakout confirmation level ($9,250)
Short term volatility should remain high but filtering the noise we already have upside confirmation, so probably the breakout zone should be seen as a support level or an optimal re-entry zone for longs ($9,250 but don't be too picky about it since volatility will be there). The main target for this up move will be around the year high of $14,000 but the mid-term context is bullish, so thats just the primary target, the ATH is still something that should come sooner or later down the line.
Strategy: Buy / Hold BTC
- Yesterday's move below $7,700 was a classic "Bear Trap", which is basically a strong (fake) bear signal. Bear traps cause a lot of extra volume (the fake signal generates a lot of sells and shorts that will further have to correct their position).
- Today's strong volume and rise above $10,350 are well above the breakout confirmation level ($9,250)
Short term volatility should remain high but filtering the noise we already have upside confirmation, so probably the breakout zone should be seen as a support level or an optimal re-entry zone for longs ($9,250 but don't be too picky about it since volatility will be there). The main target for this up move will be around the year high of $14,000 but the mid-term context is bullish, so thats just the primary target, the ATH is still something that should come sooner or later down the line.
Strategy: Buy / Hold BTC