BTCUSD - Dips Can Be Bought - Target 95k

18 окт.

As mentioned in the group, went bullish on Bitcoin around 65k buying a little for my current target of 95k. This was adding to my current position. So why bullish now? Lets explain.

Let's start with consolidations are generally continuation patterns. They come in all shapes and sizes, flags, pennants, whatever you want to call it.

The other point is this has been a pretty broad consolidation over a period of 26 weeks or so. Bullish equities tend to linger, bearish ones fall apart. We are seeing more of that lingering around than capitulating. Yes it is a pretty broad consolidation but Bitcoin is known for volatility to begin with.

The last point to make is look at how quickly the sell-offs came as Bitcoin traded above 67k. They fell apart quickly in the B-C leg and the D-E leg, even the minor leg recently it fell apart. However now we are pushing 67k and holding, it is wanting to break this trend line.

So why bullish, shouldn't we plan on another pullback?

Well not so fast! The next leg higher generally happens when you run out of sellers. See the first pullback (A leg) some missed, so when Bitcoin pushed back up towards that high, those that missed the original move took profits. You also get dip buyers and traders that are buying pullbacks and selling rallies. This is why the pattern forms. However if sellers run out, and there is still buying interest, well the next leg higher happens.

That is what we are seeing here. No we are not in the Euphoric period where everyone is buying. Actually my business partner was telling me, crap I missed the move, now he wants to buy more here. There are likely more of those out there, Crap I missed that 15k buy, I missed the 35k buy, well I am going to buy here.

So IMO there is still room to run, and this may be the initial move higher.

We need to break 70k and it stick to confirm, but as of now, and as I mentioned in the group, I bought some at 65k and will be looking to add on any pullback.