Our last post focused on potential bearish crossing of the key moving average indicator for BTC. We indicated it would add to the bullish case if BTC could hold most or all of its recent gains which would avoid a moving average cross.
As the chart below shows, that is exactly what has happened so far.
HOWEVER
There are major warning signs that must be carefully watched right now (we mean RIGHT NOW as in next few days?or hours?) that could lead to a fast drop
BTC is moving higher but volume indicates no one is really buying this move ? SO FAR. That?s a big red flag as it describes a ?topping pattern? (retest of highs with lower volume).
The good news about all this is it offers a clear roadmap of the highest probability moves from here (Please remember nothing is guaranteed ? EVER!)
ROADMAP FOR BTC AS OF JULY 9 (PRICE JUST OVER $13000 AS WE POST THIS)
Whatever price does from here ? WATCH VOLUME CAREFULLY! Unless we go WAY higher first (like $15000+) If price reverses lower with high volume ? the highest probability is a high volume move lower would be a REAL and dangerous move down.
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1st ?line in the sand? $12500
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2nd ?line in the sand? $9500-1000
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3rd ?line in the sand? $8400
Lines in the sand can be used to plan position management and stop losses ? at this time it would NOT be a high prob strategy to buy dips if price is dropping quickly with high volume until a clear bullish set up emerges.
FINAL NOTE: The WEEKLY chart for BTC (not shown at this time) is in WEEK 2 of a bullish reversal pattern which means the edge is still with the bulls, until it?s not ? SO THERE?S NO REASON TO PANIC TRADE ? but this is a set up where profits can only be saved with a clear plan that is executed without hesitation.
ALTCOINS
ETH chart is as good as any for a look at most large altcoins so we share that ? but patterns say BTC IS the Crypto Market, for now ? but we are watching for changes (divergences) as Altcoins have been awfully quiet for quite some time. That said if BTC drops, it?s very high probability altcoins are going down with it.
