The bulls got crushed this week – but « no pain no gain »!
By the way, I’m taking $CNH and Gold$ out of the weekly analyses for now, as they have lost their relevance to the crypto market (for the time being, at least).
The outlook and the important levels have not changed. 7.5k is the support/resistance flip line that needs to get taken out to give the bulls confidence that 6.5k was the low for the time being.
The 8k level might work as a magnet, as it is one of the largest liquidity pools that developed over the past 18 months.
Finally, we saw the open interest drop by 15% over the past 24 hours. It went from 100k BTC down to 85k BTC on BitMEX without seeing liquidations. A possible explanation for this is that some of the short positions were covered on this recovery move.
We took out that lower band level of $160 and dropped right into the next bigger liquidity pool at around $135.
From there, ETH$ recovered almost the same amount as BTC$: back up to $148.
The $160 level is now a very relevant support/resistance flip line. We need to trade and close above it to put on longs.
I took a long look at this chart this morning, as I was no longer able to figure out how I came up with the « support zone ». It seems to be misplaced. Purely from a liquidity pool standpoint, this zone should be lower at around $44.
Therefore, I moved it lower.
The price is trying to push out of the support zone. A possible target to the upside is $55.
In terms of trading, it offers a nice support/resistance flip line. Stay long or go long now with a stop at around $190.Lire la suite