Well price hit $10,000, stalled there and proceeded to drop all the way down to $8,100. Crazy price action so let's get right into it.
Last week I'd written that although bullish, I was not buying and that was with price in the upper $8,000's. Stuck to that, though price closing above $9,600 on a daily basis sure made it hard not to get overwhelmed by bullishness and it actually made me move my bids up higher than they were previously. I ended up leaving small bids between $9,100-$9,350 with the bulk of bids from $8,350-8,500, all of which were filled during the dump. I also got filled on a number of alts such as LINK, ETH, BAT, XLM and XTZ as covered on my Twitter. Obviously seeing that massive dump it was tempting to bail on the bids that filled, especially some of the higher up ones, but wanted to see how the weekly closed out and my shorts from $9,750 made it a bit easier to stomach. Now that the weekly is pretty well closed, where are we at?
There's three critical levels that BTC managed to close above - 1) the mid-range around $8,750; 2) the weekly support from $8,200-$8,500 and; 3) the 20 week moving average around $8,000. Bitcoin also never lost the 200 day MA/EMA which adds more credence to remaining bullish biased. As I mentioned last week, keeping this simple and the factors above are my primary lens for deciding whether BTC is bullish or bearish and therefore I'm quite happy with my fills at the moment and am positioned net long.
That being said there are causes for concerns. The weekly RSI chart closed back inside, nullifying what looked to be a huge breakout. Even more concerning is the weekly candle formation in the context of a lower high on higher time frames.
In summary, I'm bullish biased and net long given weekly support and key MA's were re-tested and held. However, if these are lost I'm going to be very quick to flip bearish given the higher time frame market structure.
As always, I'm trading BTC on Bybit which remains the undisputed best option for trading Bitcoin with leverage in my opinion. They are currently offering up to $90 bonus for new sign-ups so if you want to learn more you can also read my full review of Bybit.
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