With Mark Wood
2 posts • Page 1 of 1
-Here's the most simple view: The monthly close was bullish. Decent size wick on the candle but the body is larger than the wick. The close above the top band has potential for new highs in March. I was anticipating 40-42K which would be a perfect backtest of the top band making it even more likely to see new highs.
One thing to note is the orange 9EMA typically holds as support during bull runs catching wicks nearly perfect. This says BTC is SAFU down to 30K. Weekly shows similar.
-Weekly close was nasty. A bearish engulfing close typically brings a decent drop further down to find support but look at the weekly candle of Nov 06 in 2017 for what could come next. Price failing to get above and hold above 50K could reverse weekly sequential count and flip next week to a red 1 candle. This would be of some concern and I would start looking again at 42K and perhaps much lower.
Weekly MA support levels are updated. So far the orange 9EMA has been support since early October 2020. If/when that is lost I would consider a more long term top might be in and price could test the low 30K area. This adds confluence to what monthly shows with 30K being a key level of structural support. Not anticipating price heading down there. It's possible 40K is the new floor but if the orange MA on weekly is lost I'm not sure 40K holds.
-Daily made it back up to test the middle Bollinger Band. Now needs to pick it up for a possible move to the top band. One more reason why 50K is a pivotal area to pick up as support. Failure to do so on higher timeframes would very likely bring price back down to the low 40K area.
Daily close was strong but got blocked by the middle BB and currently still held down by that at basically 50K. Higher timeframes suggest price wants to hunt higher still but might have to cool off on lower timeframes first. A few daily closes above 50K puts mid to upper 50KS in play.