Really strong down thrust off $10,300. Nice work. Important level indeed!
I'm frankly glad bears made their last stand there. Consolidating off the longer daily MAs will build up to a really powerful next wave up. Thrusting above the October pivot last week would have left open the possibility for a short squeeze that wicked back down. At this point, re-attacking those highs will be unambiguously bullish.
Currently feeling short-term neutral with slight bearish bias. I wouldn't be surprised to see price bounce between the VPVR levels of $9,300 to $9,800 over the coming days.
I think it's very possible the market goes deeper in the short term. I could easily see a wick below the February lows to wash out weak longs and lull in over-eager shorts. Longs on Bitfinex are still up 40-50% since January. I'd love to see some of them culled.
50-day MA = $9,026
200-day MA = $8,843
Indeed. If we get "trapped" in the $9,300 to $9,600, I would also expect lower prices, unless we consolidate in this range for another 5 days until the 50 Day MA reaches $9,300 support. In these cases, I depend heavily on the 200 MA on the 4hr as to whether we hold this level or break below it, this will come sooner than 50 Day MA contact I believe.
I expect a strong reaction off that area, especially because the January pivot high and February pivot low are there as well. Lots of reasons to bounce there.
Personally, I think breaking below $9,300 would expose anywhere between $8,800 (200 Day MA) and $8,200, where the long-term point of volume control is still based. Baring in mind that in the middle of this at $8,500 where the 50 Week MA is priced at (as well as the 100 Day MA). All of this range is fair game for finding a low imo, and now thinking breaking below the 200 Day MA may not be that critical afterall.
It's looking like a a good risk reward laddering in from $8,200-$8,800, especially given the golden cross. I'd also be covering $7,800 which would be the line is the sand, but if we bounced from these lows we'd otherwise create a macro bullish inverse head & shoulders pattern with a massive moon target (MMT), as well as further confirm the macro bull flag by flipping previous resistance into support, again with MMT. I wouldn't be expecting all my buy orders to fill, but this would be exactly as planned for conservative laddering.
I'm also getting increasingly suspicious of the declining volatility, despite the move to $10K, volatility remains at lows (we have still yet to see any big moves) making lower highs since July. Unless this means we return to parabolic bull to reached $14K very quickly, as was the original intent, then the odds are the increased volatility will be to the downside with some pretty long wicks. It'd make sense to me, returning to long-term support to maintain bullish momentum with a spike in volatility.
It's time to catch those wicks again