BTCUSD: Extremely risky territory. Wait for a good entry.
The bears have overpowered the recent rally, pushing it back beyond its support at 6400. The new support is the zone around the previous two bottoms: between 5900-6100.
This is precarious territory for Bitcoin. One wrong nudge passed the 5900 line could trigger a wave of stop losses. Pushing the prices to new lows. These are the two scenarios we see happening:
1. BTC moves sideways for a long period of time. Eventually breaking upwards and starting a new cycle.
2. BTC breaks the 5900 threshold and heads to new lows.
We expect the latter scenario. Wait for a reversal candle on the 1hr timeframe, and oversold momentum indicators before joining in any rally. We're targeting entry points around $5300 and $4700 for longs.
This is precarious territory for Bitcoin. One wrong nudge passed the 5900 line could trigger a wave of stop losses. Pushing the prices to new lows. These are the two scenarios we see happening:
1. BTC moves sideways for a long period of time. Eventually breaking upwards and starting a new cycle.
2. BTC breaks the 5900 threshold and heads to new lows.
We expect the latter scenario. Wait for a reversal candle on the 1hr timeframe, and oversold momentum indicators before joining in any rally. We're targeting entry points around $5300 and $4700 for longs.