BTC is yet again at highs on Sunday before the trading week starts. BTC is struggling to stay above 60k. Lots of investors are beginning to take profit on the equity and commodity positions for cash. We can expect some exhaustion of the bullish market as the dollar and other currencies rise short term. bearish divergences are also beginning to form signaling exhaustion of the bulls.
Under normal circumstances I could see BTC dropping below 40k as low as 30k but this year we saw a lot of institutional interest in crypto as well as retail. With the backing of institutional investors we likely will not see the see the same kind of volatility we had pre 2021. None the less, a pullback is necessary. No large spec-traders would be willing to buy at current prices.
A new high would invalidate our entry and we can look for a 1:1 reverse of the breakout.
Under normal circumstances I could see BTC dropping below 40k as low as 30k but this year we saw a lot of institutional interest in crypto as well as retail. With the backing of institutional investors we likely will not see the see the same kind of volatility we had pre 2021. None the less, a pullback is necessary. No large spec-traders would be willing to buy at current prices.
A new high would invalidate our entry and we can look for a 1:1 reverse of the breakout.