Overzealous selling at USD 40K resistance without volume, bears over-extended?

Bitcoin seizes bears by the shorts with a squeeze up to USD 42K

This explosive bounce from USD 29K is sure to impress despairing buyers hoping for a glimmer of respite.

However, it is crucial to remain vigilant against the infatuations of optimism - seducing frustrated speculators from the faithful embrace of proper due diligence. 

This bounce from USD 29K, albeit impressive, does not offer reliable confirmation of a bullish reversal until BTC/USD flips the D1 200MA (BLUE) into support at USD 44.5K. 

Bitcoin, BTC/USD - Daily (D1)

We enter the "no-trade-zone".

Bitcoin approaches downward sloping resistance, which still appears to be forming one massive descending triangle. 

Usually, this is a bearish pennant by nature. 

Thus, when BTC/USD trades near significant resistance, altcoins and their /BTC trading pairs tend to sustain relief bounces. 

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Bitcoin Dominance, BTC.D - Daily (D1) 

Ethereum vs. Bitcoin, ETH/BTC - Daily (D1)

Q's Conclusion 

Should BTC.D fall while BTC/USD consolidates at resistance, ETH/BTC will likely break up.

Succumbing to FOMO and jumping the gun can prove costly - resist the temptation and keep trigger fingers at bay.

"Patience is bitter, but its fruit is sweet" - Rousseau

See you again for the next update.

- q

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