Relief Reversal for Bitcoin Is Almost Here
Hello all
The past few weeks have been a very very tough for permabulls. After the historic liquidation session in May, an overwhelmingly bearish sentiment shook the markets and especially short-term paper handed b*tches. On-chain data was not too bright either, leading to the question whether it should be renamed to Ponzi-coin. Bitcoin was going to zero, or so the bears claimed.
Then, the historical Bitcoin law passed El Salvador at LIGHTNING speed, which led to a cascade of Latin American lawmakers expressing the wish to discuss Bitcoin in their respective parliaments. Also, MSTR announcing another 500 million of bitcoin buys helped to turn the narrative. Bulls rejoiced and here we are.
For now, focusing on the current price action: Bitcoin has been stuck between in a descending channel between the 30k and 40k range, making lower highs with every attempt to break the 40k. Several test of the 30k demonstrated a strong demand zone, so every touch was met by overbidding buyers. The price action got stuck for a while in a symmetrical triangle, which broke to the downside.
Bulls didn't allow it and the bearish momentum was broken until finally an inverse head and shoulders was painted. A newly formed demand zone at approximately 36k will be the launching pad for the coming right shoulder. Optimistic traders can look for long trades on a close over the neckline, but more conservative traders can add another major confluence, i.e. the resistance at 40.5k. Either way, risk rewards ratio should be acceptable. If the rocket turns out a dud, or bulls fail to break the 40.5k, will definitely mean more indecisiveness in the 37-40k range and even a revisit of the 30k. Then discussions on how to rename Bitcoin will resurface.
If you enjoyed this, leave a like. Comments are welcome.
The past few weeks have been a very very tough for permabulls. After the historic liquidation session in May, an overwhelmingly bearish sentiment shook the markets and especially short-term paper handed b*tches. On-chain data was not too bright either, leading to the question whether it should be renamed to Ponzi-coin. Bitcoin was going to zero, or so the bears claimed.
Then, the historical Bitcoin law passed El Salvador at LIGHTNING speed, which led to a cascade of Latin American lawmakers expressing the wish to discuss Bitcoin in their respective parliaments. Also, MSTR announcing another 500 million of bitcoin buys helped to turn the narrative. Bulls rejoiced and here we are.
For now, focusing on the current price action: Bitcoin has been stuck between in a descending channel between the 30k and 40k range, making lower highs with every attempt to break the 40k. Several test of the 30k demonstrated a strong demand zone, so every touch was met by overbidding buyers. The price action got stuck for a while in a symmetrical triangle, which broke to the downside.
Bulls didn't allow it and the bearish momentum was broken until finally an inverse head and shoulders was painted. A newly formed demand zone at approximately 36k will be the launching pad for the coming right shoulder. Optimistic traders can look for long trades on a close over the neckline, but more conservative traders can add another major confluence, i.e. the resistance at 40.5k. Either way, risk rewards ratio should be acceptable. If the rocket turns out a dud, or bulls fail to break the 40.5k, will definitely mean more indecisiveness in the 37-40k range and even a revisit of the 30k. Then discussions on how to rename Bitcoin will resurface.
If you enjoyed this, leave a like. Comments are welcome.
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