Bitcoin, what are you going to do now?

So we got the pullback that I was writing about in my last Weekly Review. But now, what’s the next move? Are we going lower? Are we going to $50k? Bitcoin may definitely continue to move towards the $50-60k level as I’ve approached in HTF Tuesdays in the upcoming months, but doesn’t it make sense to go first below $40k?

Well for me it doesn’t. Briefly, this is the time we either stay here (or slightly lower) for a while, or we just reject and continue the uptrend from $38k. I would want to wait until the start of next week to define correctly the direction in any case.

We could see more sideways movement as long as we stay above $41k. However, the reaction I wanted to focus more on is the bullish one: we will set a higher high (marked in the chart as CHoCH – Change of Character) and reject from the 1 hour fair value gap, which would start the continuation of the uptrend.

Finally, in order to have everything covered, if we do trade below $40k, I’d try to stay safe from any overleveraged position. Anyway, have a good trading week!