What happened yesterday in the crypto market was a great example of the power of patterns to help you make trading decisions.
$9500 got broken with volume and this was the ?head for the sidelines moment?. There is no safe trade below $9500 so best to let BTC drop and wait for it to recover above $9500 where reentry makes sense for the bullish case.
This is not the only trade strategy but it is the SAFEST one and with the huge moves of the crypto market, is always worth considering.
2 THINGS YOU GOTTA KNOW NOW (plus more on the BTC Futures Chart)
We share the BTC Futures chart updated below along with the weekly chart from last post. Once again the futures proved to be a very good indicator as price and volume both became very volatile below $9500. See below for more.
In addition:
1) RETEST OF $9500 IS HIGH PROBABILITY ? After a consolidation pattern that lasted this long ? price SHOULD retest the breakdown level at some point. If we?re still in a bullish cycle this should happen sooner than later so stay alert ? what happens if/when price retests $9500 IS TRADEABLE and will likely mean something to the entire crypto market intermediate term so this is a big deal. It?s even a big deal if we don?t retest quickly as that supports the bearish case. BOTTOM LINE ? WATCH FOR RETEST!
2) BTC IS STILL KING ? ALTCOINS bullish signs were just a headfake ? No altcoin charts today ? why? We noted in last post that BTC dropped while Altcoins went higher and that meant ?something? ? so far it meant EVERYTHING was headed down – all stops were hit so Altcoins are not the place to be at the moment? This is a strong confirmation BTC is still the crypto to watch and consider in all trades. We swear that will change one day but until it does?-it hasn?t?
3) BONUS ?thing to know? Gold moved strongly higher yesterday ? the opposite of BTC ? will that divergence continue? ? Wouldn?t trade on this alone, however, we think it?s worth keeping an eye on this because that?s very different than the last several months price action.
