The week is still young, it is not over. Bitcoin peaked last week at 69,586 and closed at 68,035. Compared to 29-July, the week that started the major drop ending 5-August, the market produced a lower high. People remained bearish because prices were still "trading below resistance."
This week, as soon as it starts, Bitcoin moves above resistance, in reverse, people would become extremely bullish because now Bitcoin is trading "above resistance," but this is dangerous because the week is young and confirmation only happens after the week closes. It can happen that Bitcoin moves above resistance for a few days just to come crashing back down, and this is exactly what we are seeing now.
The current session is the last candle on the chart, to the right.
Notice the lower part of the chat and see the trading volume bars; it is super low. Extremely low to be honest. A real break of resistance would be coupled with really high, super high volume but this isn't the case.
The week is not over, it is only Wednesday. If Bitcoin moves lower and closes below 68,035, you would end up with a long upper wick and a red candle, making the current action and the complete move a classic bull-trap, a fake bullish breakout. This is a market move that is perpetrated with the intention of fooling traders into believing that market conditions have changed, instead of a drop next, we would see 100K. When traders start buying, at the top, then the whales can sell and that's the trap; end of the move.
To be fair, the week is not over, and it can end up moving in either way.
If it moves and closes below 70K you have your bull-trap and bearish confirmation. If it moves and closes above 74K, the conditions are better but still mixed. It doesn't matter how hight it goes, you are still seeing Bitcoin trading near a top. A top is the worst place to go LONG.
Give the market time to unravel. I am considering both sides but the highest probability scenario is the bearish trade, why? Because we have hundreds and hundreds of Altcoins that are down and when Bitcoin is up and growing, the Altcoins tend to do the same. The fact that Bitcoin is up and many of the top Altcoins are down means that this move so far is fake.
We will see a new low before the correction ends.
Patience is key.
Thank you for reading.
Namaste.