Bitcoin correction through time and price coming to an end?
Bitcoin was all the rage in the first quarter of the year. Price was appreciating fast and everyone was gobbling up shares of the newly approved ETFs hand over fist before the highly anticipated halving. Bitcoin climbed 91% in 50 days from the January 23 low to the March 13th high.
However, after topping out in March around $74,000 Bitcoin has entered into a 61 day (and counting) correction through time and price which has done a great job at working off the froth, momentum chasers, and leveraged degens. In short, the attention shifted away from BTC.
It's too early to declare bullish victory definitively but this this zoomed out perspective continues to look extremely constructive to me and my bet is the low we saw around 56K on May 1 will be the low for this consolidation and so as long as we stay above that level (really I want to see Bitcoin stay above 59K), I'll maintain my long trade here.
If we roll over back into the mid to upper 50K's I'll consider myself wrong and stop out and move to the sidelines for the next setup to emerge.
For those who think the waters are too cloudy right now, waiting for a breakout back over 65K should be the unlock for new momentum to enter this market.
(disclosure: long)
However, after topping out in March around $74,000 Bitcoin has entered into a 61 day (and counting) correction through time and price which has done a great job at working off the froth, momentum chasers, and leveraged degens. In short, the attention shifted away from BTC.
It's too early to declare bullish victory definitively but this this zoomed out perspective continues to look extremely constructive to me and my bet is the low we saw around 56K on May 1 will be the low for this consolidation and so as long as we stay above that level (really I want to see Bitcoin stay above 59K), I'll maintain my long trade here.
If we roll over back into the mid to upper 50K's I'll consider myself wrong and stop out and move to the sidelines for the next setup to emerge.
For those who think the waters are too cloudy right now, waiting for a breakout back over 65K should be the unlock for new momentum to enter this market.
(disclosure: long)
Evan Medeiros
Founder, Trade Risk
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Website: thetraderisk.com
Twitter: twitter.com/evanmedeiros
Latest Analysis: thetraderisk.com/smw
Free Newsletter: thetraderisk.com/trading-newsletter
Founder, Trade Risk
---
Website: thetraderisk.com
Twitter: twitter.com/evanmedeiros
Latest Analysis: thetraderisk.com/smw
Free Newsletter: thetraderisk.com/trading-newsletter
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