Let's take a look at BTCUSDT on the Daily and Weekly Timeframe now that we've fallen below our 200-day moving averages (daily timeframe - key metric) --
We have had a decent reversion to the mean, which is not unthinkable and happens in almost every tradable asset.
We want to make sure we're paying attention to larger important levels and not simply going by the mentality (buy the dip) -- As a dip buy in the 42-50k imbalance area wasn't one that made a lot of technical sense - other than having an expectation of buyers over the 200-day averages but remember on large moves like the last year --- don't underestimate those weekly reversion levels...
28-33k area weekly support zone converges with the uptrend from the last bear market lows. Under that, we still have a break-out imbalance zone mid 20k that hasn't had any filling and under that is the test of the previous ATH Breakout range-- all of these are not out of the question as far as potential retracements.
We want to see if we can hold our uptrend from the last lows, hold our 50week moving averages and begin to curl upwards -- The shakeouts on BTC over the years tend to discourage the newer investors and so volume tends to begin to fade but I'm watching for the Sunday weekly close and how we approach recapturing our 200day averages and the downtrend resistance over 40k.
Things take time--- but don't be discouraged. You can play both directions with trades and remain patient with your long term.
We have had a decent reversion to the mean, which is not unthinkable and happens in almost every tradable asset.
We want to make sure we're paying attention to larger important levels and not simply going by the mentality (buy the dip) -- As a dip buy in the 42-50k imbalance area wasn't one that made a lot of technical sense - other than having an expectation of buyers over the 200-day averages but remember on large moves like the last year --- don't underestimate those weekly reversion levels...
28-33k area weekly support zone converges with the uptrend from the last bear market lows. Under that, we still have a break-out imbalance zone mid 20k that hasn't had any filling and under that is the test of the previous ATH Breakout range-- all of these are not out of the question as far as potential retracements.
We want to see if we can hold our uptrend from the last lows, hold our 50week moving averages and begin to curl upwards -- The shakeouts on BTC over the years tend to discourage the newer investors and so volume tends to begin to fade but I'm watching for the Sunday weekly close and how we approach recapturing our 200day averages and the downtrend resistance over 40k.
Things take time--- but don't be discouraged. You can play both directions with trades and remain patient with your long term.