So its finally Friday, pretty interesting week in terms of price action. It’s currently 10 am for me, I have literally just made a cup of coffee and am sitting down to take a look at the charts for the first time since last night. Yesterday and even the last few days it seemed as though we have now broken out of this sideways movement and price seems to want to make a bigger longterm move. Before heading to bed last night I think the price of BTC was around $6750, a key region which I mentioned on twitter that had to hold in order for us to remain LTF bullish. Let’s see what happened…
Bitcoin
So first look at the chart, first things first this level at $6750 held perfectly throughout the night, price perfectly supported price action and this is a clear S/R flip (a setup that I covered in yesterday’s newsletter). Even though price held up great, we are now straight away back at resistance at this $7000 region, this is due to price currently bring in a tight range between $6750 and $7000. If price can flip $7000 into new support then there is no reason we should not be targetting $8200 next….
Low timeframe obviously showing here that $7000 is acting as strong resistance, and even though we did see $7000 broken yesterday to take some liquidity I’m not expecting this level to be easily flipped into support and some small sideways action in this range would probably be the most likely scenario.
Right now I would say my bias is swinging towards just being neutral and not trading or buying this tight range, It’s going to be really hard to trade in this range so sitting on the sidelines is the best option (patience is a virtue). If price breaks above $7000 and flips that level into support with good strength from buyers then I would be looking for entry. If price breaks below $6700 and flips that level into resistance then I would be looking to take more cash off the table and buy back in at lower prices.
Should you really be looking at jumping into longs at $7000 resistance? (Image above). Highly likely that right now you feel as though you have missed this nice move upwards over the past 48 hours and really want to jump into BTC. My opinion on that is, patience is always the path to the best entry, why long into resistance when at some point over this weekend you will get the chance to long as support.
Where is support? From where we are currently, our biggest higher timeframe support region is $6300 and our lower timeframe range low is $6750. So these are the two levels I would be watching out for as we go into this weekend. Watch how price reacts there.
Ethereum
I also just want to quickly cover ETH/USD as just want to give my opinion on the closes overnight. Looks to me that $140 has been flipped into support which is great, this resistance level has been holding down price action since breaking down a few weeks ago and it’s nice to finally see price above with a good amount of buyers below.
Looking very similar to the Bitcoin range here, $150 is our range high and $140 is our range low. Currently waiting to see which way price wants to move from here after some sideways action and will be waiting for that key S/R flip to show a position. That said, this level at $140 has just been flipped for the first time so I would be a little more careful taking short positions over longs right now, I’m thinking a lot of people will be rushing to short this right now and a crowded trade is never the best idea.
Summary
So just to summarize quickly, I’m pretty neutral here as we range in between two key levels for both Bitcoin and Ethereum. Currently waiting for price to flip either one of the key levels before making my next move. If I had to express my bullish bias on a % scale right now, I would be leaning 60% bullish and 40% bearish. I hope this newsletter has helped in more detail express my opinions on the market and what I’m looking at.
Hope everyone is safe and well
- Cactus
whats LTF mean?