Sunday Bloody Sunday
As the week came to a close, Bitcoin and the market as a whole saw one of the largest single day corrections of the past few weeks and has continued to bleed heading into Monday. So what now, is it all over for the bulls?
As covered in previous updates, $9,500-9,600 is a critical level for Bitcoin and has been a pivotal point in the past. Price cleared it last week before getting stalling just before $10,600 and is now re-testing it as support. As planned, I have entered longs here and have a few more lower down. Viewing this as a re-test in a bullish market and longing heavily until proven wrong, though that rejection from the former swing high makes me a bit more cautious than I would typically be. If this level does give out the 20 week moving average and former support zone around $8,500 are the key areas I'll be watching to maintain a bullish bias.
On the daily chart, ideally I'd like to see Bitcoin close above 9750 or so which would give it a close above the primary trend line and above the 20 day moving average. The daily hasn't closed yet but there's a pretty clear hidden bull div forming. More reasons to be long than short here though if Tuesday were to close in the red too it would be cause to re-evaluate.
The altcoin market took a bigger hit than Bitcoin did and closed the week on a pretty ugly doji. Some individual coins look like trash now as well, but it's worth noting that the alt market as a whole is still maintaining the uptrend and has not lost the key $90B. However, it's clear there was a bit of a flight to quality - alts like LINK, XTZ, ETH, BNB bounced back from the lows extremely hard whereas other coins are still struggling to regain their trend. Overall, still bullish on the alt market, especially if you managed to get a good entry during that dump.
As I called out on Twitter, I added quite a bit to my BNB and LINK positions during the dump.
Last, but not least I want to quickly cover Ethereum which continues to be one of the strongest performers in the market. Price action has been incredibly clean as well and shows two clear plays - long a retest of $220-230 or long a close above $300. Personally I'm hoping for the former and we almost got there on the dump but it was bought up quickly.
As long as Bitcoin holds $9,500 on a weekly basis and the altcoin market holds $90B, there's little cause to be bearish. Although lower time frames show some bearishness, the higher time frame trend is still clearly up; lose these critical levels on the higher time frame and I'll start to consider bearish scenarios.
Make sure to follow my Twitter, where I can provide more regular updates in the event bearish signs do start to surface.
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