6 Weeks ago BTC traded above the Weekly 50SMA (yellow dotted line) but at that time the 21 Week SMA (blue dotted line) was higher than it is now and sellers won that fight. Nevertheless, If BTC starts trading above the Weekly 21SMA, we may start the next leg up. If not, we remain Bearish for short and mid-term.
As we know, BTC produced a very strong impulsive move from 3k to 14k but it doesn’t mean it will not go below 6k again. In fact we don’t have much support below 6.3k and revisiting 6.9k can be the catalyst needed for another crash to 5k. Nothing is granted but we already saw a strong dump when BTC broke down the 3Day 200SMA and something similar can happen again.
The only way to avoid that would be holding above 7.4/7.5k and finally pumping well above 8.1k. 9.5k/10.3k is the next resistance, if we retest that level and confirm support near 8k we may be over with this wave 2 but almost everything is suggesting the opposite. We should expect more lows, eventually another crash (capitulation) liquidating over-leveraged traders/investors. Don’t be one of them.
While BTC is pushing higher, breaking the previous resistance (near 7.5k) alts keep dumping. ETHBTC is only 5% above the last low (achieved in September 2019) and we don’t know what will happen next. Many expect BTC to pump but honestly we need more than this to be optimistic. BTC clearly needs to show strength holding above 7.5k and breaking 8.5k. If it doesn’t happen 5k remains our next target.