There are two ways to answer this question, we can consider the chart and look at the numbers or we can make assumptions.
Bitcoin produced a strong rejection right below the All-Time High. Bitcoin (BTCUSDT) produced six consecutive days closing red. Something never seen before. After such continued bearish action, some relief is possible and necessary, this is what we are seeing today.
Based on the numbers, as long as Bitcoin trades weekly below 70,000, the bearish bias remains intact. Say Bitcoin moves today or tomorrow above 70,000, are we bullish? Not yet. It would need to close the week above this level for the bullish potential to be confirmed and then a weekly close above 74,000 is needed to confirm a bullish bias. Any trading below these levels and the bearish potential remains intact.
It can happen that Bitcoin moves above 70,000 for a few days just to comeback crashing down. But this already happened last week.
Here we can see resistance clearly depicted on the chart, so we expect lower prices. Selling started to happen as soon as Bitcoin moved above 70K today.
If we look at ETHUSDT on the daily timeframe, we can see that this is not a bullish reversal but instead a small relief. The market never moves straight down nor straight up, it fluctuates between green and red.
Expect lower prices.
The correction is not over.
Thank you for reading.
Namaste.
