It seems that market participants are uncertain about the next larger move that bitcoin will make. This can be seen in the charts.
I am not convinced (yet) that we have a confirmed rising wedge. But the decreasing volume together with the fact that local tops are happening faster and less forcefully, might mean that we see the market getting caught in a bull-trap.
If this plays out, my price target is in the area of $44-50k. In terms of the big picture, this is totally fine, and does not break the bullish trend.
I mentioned the $54k level in my weekend post (in combination with the rising wedge). This price also shows the importance of the pivot points.
The S comes in just below $54k.
The 4h chart does not look good. I am expecting some battles inside of the Ichimoku cloud, but if you pointed a gun at my head, I would opt to sell there.
S2 comes in just at the $50k level, but given the price-volume pattern, I think we might take a further dive to $48k.
Today, I would also like to highlight a coin that seems to be going against the mainstream: IOTA.
We saw some really strong buying interest from the high $0.35 area all the way up to $1.40. The price move reminds me of some of the DeFi tokens. The only small difference is that the IOTA project has been around way longer than the DeFi sector itself.
It will be hard to get a position on right now, but my preferred buying area is between $1.00-1.20.
I think there is a good chance that we will come back down, as we are already up at the R2 level.
The $1.40 area, which is just above the Ichimoku cloud, is my first bid level. The coin is pretty volatile (similar to that of some DeFi tokens), but the development team has started to release some groundbreaking changes. We will have some more information in a detailed analysis about IOTA in the near future.
DISCLAIMER: Our desk is holding a long IOTA position.Read more