With all the hype of the ETF approval well and truly behind us, the crypto market has lost it’s steam the past couple weeks.
But what do the charts tell us? I’ll gladly admit I’m pretty 50/50 on the direction of the market currently but let’s jump in and i’ll explain why.
After a much needed correction price has traded from the top of this range right back down to the bottom at 40k,
it has swept liquidity, filled a daily/weekly FVG and deviated back inside the range.
At this current point in time the weekly candle is due to close in 12h showing a very strong bull hammer, making a good case for strong price appreciation upwards.
The next crucial swing point is where i have marked out the yellow box, here price will look to sweep internal range liquidity, test the trend line, meet the 0.5-06.18fibs of the range and fill a large FVG.
This is the point I’ll be watching very closely for a rejection.
Now we could reject from there and trade lower, given that i was expecting a deeper retracement to the mid 30s as market needs a decent pullback from this large run up over the last few months.
Pair this sentiment with the DXY chart i posted where price is currently consolidating and playing out a market maker buy model to reach the liquidity pools at 104.50 we could also see the headwind from this effect BTC in a negative correlation.
Although the charts look strong the real decision of direction will come early this week when price meets that crucial swing point!
BTC MACRO OUTLOOK –
With all the hype of the ETF approval well and truly behind us, the crypto market has lost it’s steam the past couple weeks.
But what do the charts tell us? I’ll gladly admit I’m pretty 50/50 on the direction of the market currently but let’s jump in and i’ll explain why.
After a much needed correction price has traded from the top of this range right back down to the bottom at 40k,
it has swept liquidity, filled a daily/weekly FVG and deviated back inside the range.
At this current point in time the weekly candle is due to close in 12h showing a very strong bull hammer, making a good case for strong price appreciation upwards.
The next crucial swing point is where i have marked out the yellow box, here price will look to sweep internal range liquidity, test the trend line, meet the 0.5-06.18fibs of the range and fill a large FVG.
This is the point I’ll be watching very closely for a rejection.
Now we could reject from there and trade lower, given that i was expecting a deeper retracement to the mid 30s as market needs a decent pullback from this large run up over the last few months.
Pair this sentiment with the DXY chart i posted where price is currently consolidating and playing out a market maker buy model to reach the liquidity pools at 104.50 we could also see the headwind from this effect BTC in a negative correlation.
Although the charts look strong the real decision of direction will come early this week when price meets that crucial swing point!