This article was first published on Metal Blog
Bitcoin (BTCUSD) (3-day / 8-hour Comparison)
Many participants in the crypto markets were shocked by a sudden Saturday drop in Bitcoin’s price as it approached a 4hr candle close at 04:00 UTC.
If you’ve been following our weekly reports, we’ve been prepping you for this exact scenario, and the timing couldn’t have been better for the bulls.
Prior to that drop, bulls would have needed to push Sunday’s weekly/3-day close up beyond $65k to look good. However, once we saw the sharp drop and immediate buyback, the requirements for a strong close became easier to achieve.
This is a standard pattern we’ve seen play out on Fibonacci retracement ranges of all sizes in the past year. Price reaches to “fakeout level” (-0.1), then drops, and finally finds support at the “continuation levels” (0.322-0.382).
As the entire CryptoTwitter-verse panicked and wondered what happened, keen traders were ready to deploy capital and go on a shopping spree for discounted cryptos.
The yellow dotted line you see on the 3-day chart below was the deciding point for last night’s close, and bulls managed to push price just beyond it to save both the 3-day and weekly candles.
The 8-hour chart below has a new retracement range, with the new high, and the Saturday night drop. Buyers should be cautious until we see a solid candle body breakthrough of $63,307 with some strength, but for now, this orange box showing support is a good sign for bulls.
Ethereum (ETHUSD) (3-day / 8-hour Comparison)
Ethereum of course felt some pain from the sudden market-wide drop, but recovered very quickly, with a strong show of support off the previous high, and then the “takeout” level, confirming this range break, and all extension targets still in play.
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