The Bitcoin Rally.. Will we see continuation!?

Happy Tuesday to everyone! I hope you all had a great start to your week. I challenge you to step out of your comfort zone this week, whether that involves meeting new people, trying new food, applying for that job, or asking for that promotion. Whatever it may be, go for it!

Now that we've got that covered, let's dive into BTC (Bitcoin).

Update Information from Market Update #1

If you took the time to read our last post in the newsletter, you would have noticed the recent upside price action of BTC. We accurately predicted a green week, and that's precisely what occurred.

If you also take a look at the chart above, we also predicted a push higher because there was no higher wick formed on the weekly time frame. I mentioned that the absence of a higher wick or a liquidity sweep on the weekly timeframe builds up a significant amount of liquidity (money) as everyone is consistently selling or shorting BTC. This gave us a strong indication that we would experience an upward move towards 28k+.

Will we see continuation?

This is the question that everyone is asking… Will we see this upwards move continue for Bitcoin? If I had to guess, I would say there is a solid chance we continue higher to take out the higher around 31,000.

I do expect a small retracement towards 27.2k, which has served as solid support in the past and recently. This level also aligns with the current imbalance in price that has been created, which would aid in price rebalancing itself before moving higher.

After a potential pullback, I would like to see a strong reaction off that support/imbalance level towards the upside. I don't want to see slow movements; instead, I want to see significant volume driving us higher to surpass our recent swing high around 28,460.

After the push above our recent swing high, a pullback is likely to occur. However, I would like to see 28,000 hold as it has been a solid psychological support level based on past data. If we drop below 28,000 again, I would not be confident about a further upward move to surpass our highs at 31,000.

I do believe that a move like this is possible, which would trap both bears and bulls. Bulls would anticipate a continuation towards new all-time highs, but they may be unaware that this could potentially create substantial trendline liquidity that could be eliminated in a potential liquidity sweep reversal around 31,000, leading to a return to the previous lows. On the other hand, bears would face significant losses during this upward movement.

Conclusion

Altogether, this is not the time to be overly bearish or overly bullish. As I mentioned in my last market update, it is best to exercise patience. If you were patient, you could have made some solid trades during the recent upward move.

I do believe there is a good chance for an upward movement from here. Do I think everything I discussed here will unfold perfectly? No, but it's important to acknowledge that if any of the mentioned scenarios do occur, there is a reason behind it, and it's crucial to understand that.

So, for now, I will be sitting on my hands until we surpass our previous swing high around 28,400. I will be looking for long opportunities on the retest around 28,000.

Always remember, there is no reason to force a trade. Let the market come to you..

I hope the above content has provided you with a better understanding of the overall market. If you have any questions, feel free to DM me on Twitter @TheOnlyNotice!