Hello guys, I hope that you are doing well.
I am bullish on BTC since it wicked to 23k in August. The last major long have been taken around 28k with profit taking at 35411 (preset with limit order) because I wanted to see the price finishing the smaller bullish sequence.
Now there are two options for the future price movement:
1) BTC will correct the smaller bullish sequence first before going for the 100extension of the bigger bullish sequence (40k)
2) BTC will instantly continue the path to 40k and potentially higher to the target area of 50-56k
If we are looking at the very local price action, we can see consolidation under monthly and fibonacci resistance. Looking at the volume, we can see a freakin´lot of sell volume that is getting absorbed. I believe that this sell volume will be the fuel for the leg up to 40k and potentially higher.
Why do I think so? Why do I prefer scenario 2)?
Basically because of the sell volume absorption and the fact that we do not have any bearish tivergences in timeframes like 4 hr, 12 hr, daily and weekly. If we check the oscillator (wolfpack) in the daily then we can see that it is just resetting. There are no bearish divergences given and the price is unable to drop and stay at lower levels even with all that sell volume.
For sure the next days and weeks will be exiting for the whole crypto space.
I am bullish on BTC since it wicked to 23k in August. The last major long have been taken around 28k with profit taking at 35411 (preset with limit order) because I wanted to see the price finishing the smaller bullish sequence.
Now there are two options for the future price movement:
1) BTC will correct the smaller bullish sequence first before going for the 100extension of the bigger bullish sequence (40k)
2) BTC will instantly continue the path to 40k and potentially higher to the target area of 50-56k
If we are looking at the very local price action, we can see consolidation under monthly and fibonacci resistance. Looking at the volume, we can see a freakin´lot of sell volume that is getting absorbed. I believe that this sell volume will be the fuel for the leg up to 40k and potentially higher.
Why do I think so? Why do I prefer scenario 2)?
Basically because of the sell volume absorption and the fact that we do not have any bearish tivergences in timeframes like 4 hr, 12 hr, daily and weekly. If we check the oscillator (wolfpack) in the daily then we can see that it is just resetting. There are no bearish divergences given and the price is unable to drop and stay at lower levels even with all that sell volume.
For sure the next days and weeks will be exiting for the whole crypto space.