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BTC Summer Range
Bitcoin has gone sideways and is sitting about $1000 below where it was at the time of last week’s post. Not a lot has changed but it did manage to confirm the W before pulling back down below that breakout level. Now we’re looking at a potential M in price structure. The Davo mentioned last week did come in on RSI and Willy but was then immediately followed by potential M structure. Volume has been decreasing the last couple weeks and I think we’re experiencing a slow summer doldrums type market with not a lot of activity. It seems the bullish momentum from last week is on pause at the moment with the potential M we’re seeing. I drew a trendline off the recent lows and price is sitting right on it now. If we see an M top come in on the other side of this trendline then I would expect a move lower. Until then my cautious optimism statement from last week is still intact but waning as I watch this bearish structure trying to form.That said, we do have a daily W working and no confirmation of bearishness yet.
As mentioned last week, I really don’t like the location here for new longs and would much prefer to be buying in the reload zone at $27k or below. I wouldn’t be surprised to see a dump down into those levels before we see a real bottom. Sitting right here at 35k is very middle of the road to me and not a great place to trade. For now I think we’re stuck in a range and I will be waiting for the market to give a clear sign of direction before making any moves.
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