BTC/USD, BTC.D (Bitcoin Dominance): Technical Outlook, Edition #18 (10/06/21)
BTC/USD showing signs of bullish momentum. Let's dig deeper and understand how to spot potential confirmation of the bulls returning to power. This edition features chart analysis and Wyckoff overlay
Our Bitcoin bulls held their end of the field after ripping back hard from a drop to their support block at USD 31K.
They are still around - nevertheless, with a lot more work to do.
After bouncing 20%, this price action is a great start. However, moving forward, the cooling-off for BTC/USD needs to hold a few key zones.
Flipping above the H4 50 MA (Moving Average) at USD 36K and macro 0.5 fib retracement level around USD 34K returned some bullish sentiment.
The next few days are critical as these bulls fight to hold both of the two zones; establishing support here would likely see uptrend continuation to USD 41K.
Two higher highs and higher lows (HH and HL) are needed to confirm a bullish reversal on BTC/USD.
Until we see such confirmation, this could merely be a bounce. Consequently, it may be wise to keep longs temporary and vigilantly monitor when buying bounces.
While BTC/USD continues making consecutive lower highs (LH), then bearish bias remains.
Take a look at the following BTC/USD overlay with Wyckoff Accumulation Schematic #1:
BTC.D (Bitcoin Dominance) is also looking bullish. However, altcoins may receive some love if Bitcoin consolidates.
If the chart below puts in a higher low (HL), you may miss an opportunity by not trading altcoins back into BTC until this dominance play is over.
Q's Conclusion: Focus on Bitcoin, for now. If altcoins continue bleeding to support BTC.D reversal, we could soon be in for a significant move.
See you again for the next update.
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