BTC Market Update: Two Scenarios in Play

The sheer turbulence of the cryptocurrency market these days has sidelined all but the most adventurous traders. As far as rollercoasters go, this one has been pretty thrilling, a little scary, and entirely unpredictable.

An easy way to gauge just how few traders have a sense of direction in these tumultuous times is to read a Crypto Twitter feed. The more posts you see about meta-crypto topics, things Binance is doing, or dogs, the deeper in a bear cycle the market is.

That’s alright, though. We’ve said this before, and so have many others, but it’s always worth repeating: Markets move in cycles. In our humble opinion, the rocket is refueling. But, if you’re the one strapped in the rocket and waiting for launch, it’s easy to become impatient with the process you’re unable to see.

Rockets aside, BTC is currently cooling at $8,267 – a far cry from $10K. Crypto’s #1 is throwing mixed signals into the air. Both weekly and 2W timeframes displayed clear weakness by closing below HTF demand OB EQ at $8,259.80.

Additionally, there is an olympic-size pool of demand resting below us from $7,400 to $6,650. That roughly translates as traders not wanting to hop in this ambiguous $8K price zone that looks ready to break down. The logic is – BTC seems weak, it dropped like a rock from $10K, so, why buy here instead of lower?

We do, however, see a potential bearish retest of ~$8,890 in the cards and an area of interest to short. On the other hand, if we arrive at $8,890 and decisively sail past it without so much as a coffee break, then we’d look to buy on a retest and target ~$9,800.

To summarize, the situation is basically this: We aren’t doing anything here. Prices may break down again like they did last week. If they do, you’ll be happy you saved your ammo for the lows. Watch for a move toward $9K, and if it happens neatly on decisive volume and good vibes, then we’ll join the party.