As the Dow dropped by 12.4% from Monday to Friday, BTC dropped by 24% during the same amount of time. Today the Dow showed signs of recovery so BTC is doing the same. Individual retail investors did not provoke the sell-off last week, institutional money did. We had a 74 Billion dollar drop in crypto between Monday and Friday, finding stabilization only after the markets had closed. This tells you that without the jitters of the major indices BTC wants to continue its own path, which is to move up. We’ll continue to monitor both but eventually they will go their separate ways again.
WHAT’S BTC DOING NOW?
BTC is climbing up again trying to make its way above the 200 Moving average on the daily chart , this is a sign that there’s upwards strength still. We want to see BTC close above the 200MA today and eventually close above the 50MA. These couple of moves have to happen in the next few days. The main reason is that momentum is still pushing up but eventually it will turn neutral and then down if we don’t continue moving up. Keep in mind that BTC is currently working with a golden cross and it always has a positive effect on price. On the 6H chart, we were able to climb above the resistance line very decisively.
The area of concern behaved as expected, the two moving averages (the 20 and 50) were able to act as strong support and prevented BTC from moving further down for now. It also gave us the chance to buy BTC at around $8500 which was our 4rth buy zone, before moving back up.