BTC/USD: Weekend update
- Bitcoin price is looking good again after a bounce from the demand zone ($28,796 to $31,037).
- From a price action point of view, this rally might sweep the swing high at $35,550.
- However, this move would be a perfect run-up if it tags 62% Fib at $36,569 or the Optimal Trade Entry (OTE), aka 70.5% Fib at $37,632.
Bitcoin price was doing a good job sticking to the ranges formed after the May 19 crash, but the crash from June 18 to June 22 caught a lot of investors off guard (including us) as it slid below the May 19 swing low to form a new one.
While the falling knife play didn’t occur, we did post a tweet on June 23 exploring how BTC might dip to $30,932.
This idea was refined as BTC continued to retrace after setting up a local top.
On June 25, we explored two possibilities of how the rally might continue, and the second one (a dip into the demand zone, ranging from $28,796 to $31,037) panned out.
Scenario 2: What to expect?
On the 3-hour chart, BTC formed a demand zone, extending from $28,796 to $31,037 before rallying 17% to set up a local top at $35,500.
Therefore, the pullback from this rally was likely to find a bottom inside the demand zone. A few hours later, BTC dips into this area of support, creates a swing low at $30,101, and continues to rally higher.
The short-term perspective indicates that Bitcoin price is likely to sweep the local top at $35,500.
But in some cases, BTC might even tag the 62% Fib at $36,569 or the 70.5% Fib at $37,362. Either of these would create a perfect opportunity to short BTC.
Fin.
Disclaimer: This is NOT financial/investment advice.
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