Bitcoin is Simply Retesting Previous Support, Now Resistance
Traders,
I am hearing many, if not most, technical analyst now swinging back to the bullish side. But there are a few things that cause me to be wary of such sentiment just yet:
#1 - The attempt by the bears to reach our target down on that H&S pattern, was weak. 25,8k was NOT the final target. I expect 25.2k at least. Maybe even a wick down to 24.2k before we get any kind of green flag again.
#2 - Every new high on the daily is simply a lower high, which means that the trend is still our friend. And since mid-April, the trend has been to the down side.
#3 - We are now testing the underside of the neckline to our H&S pattern. This is to be expected and only confirms the validity of the H&S pattern. Unless/until the bulls were to break back above that neckline and confirm, the H&S pattern would not be invalidated.
#4 - The recent move up this past week or so simply looks like a bear flag to me, indicating we still have further to travel down.
We'll see how alts continue to fair with BTC expected continuation to the down side. If they remain strong, I will continue to enter trades as we approach our BTC retest target of 25,200.
Best,
Stew
I am hearing many, if not most, technical analyst now swinging back to the bullish side. But there are a few things that cause me to be wary of such sentiment just yet:
#1 - The attempt by the bears to reach our target down on that H&S pattern, was weak. 25,8k was NOT the final target. I expect 25.2k at least. Maybe even a wick down to 24.2k before we get any kind of green flag again.
#2 - Every new high on the daily is simply a lower high, which means that the trend is still our friend. And since mid-April, the trend has been to the down side.
#3 - We are now testing the underside of the neckline to our H&S pattern. This is to be expected and only confirms the validity of the H&S pattern. Unless/until the bulls were to break back above that neckline and confirm, the H&S pattern would not be invalidated.
#4 - The recent move up this past week or so simply looks like a bear flag to me, indicating we still have further to travel down.
We'll see how alts continue to fair with BTC expected continuation to the down side. If they remain strong, I will continue to enter trades as we approach our BTC retest target of 25,200.
Best,
Stew
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