Bearish risks still exist. 42.5K to watch

28 Ara 2023

Morning folks,

So, downside action has happened, even deeper than we thought. Bearish grabber on daily chart still exists and suggests potential drop below 40K area. Still, this is just the pattern and could fail as any other one. To bet against it or not - this choice is up to you, we just share with our thoughts on the suggest.

First is, downside action on daily is a bit heavy. It is clear that market resists and traders are buying on deeps.

Second - BTC stands in triangle shape on 4H chart which is also potentially bullish.

Finally, on 1H chart upside recovery is relatively fast and is taking the shape of reverse H&S pattern. So 42.50-42.60K is most comfortable area for position taking and you do not need to place too far stop. Because if BTC keeps upward action - it should start right from here. If not - it is not make sense to place far stop, because drop anyway will be deep.

So, the only decision that you have to make is whether you're ready to go against daily grabber. If not - then sit on the hands. If this risk is acceptable to you, then you could try carefully to buy some coins around...