Market Report May 3 2021

This article was first published on Metal Blog
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Bitcoin (BTCUSD) (3-day / 8-hour Comparison)

Bitcoin remains on the back burner it seems, with an overall sideways movement as more attention is pointed towards ETH and alts in general.

These periods of “chop” for BTC can be maddening for traders who trade primarily Bitcoin, with or without leverage.  Although it may seem sluggish, when we zoom out for a glance at the 3-day chart, we see price action that is clearly bullish, as levels we’ve been monitoring for weeks are being tested, broken through, and retested to confirm support where there was formerly resistance.

Further evidence on the 8-hour chart shows the Fibonacci retracement range looking more and more like a failed breakdown/reversal.  You can see our “neutral” zone was tested with a weak rejection, broken through to the upside, and retested from above, which was answered with a strong show of support.  What all this means is that Bitcoin is grinding upwards, in a seemingly erratic fashion if you are not zooming out.  When we zoom out and examine the important data – candle closes and reaction to significant levels – it’s clear that King Corn is gathering its strength before another major move.

As we approach a key zone, traders must watch for bullish confirmation or merely an optimal-trade-entry for a bearish swing trade.

If we see a swift rejection, we could be looking at this fib range resolving in further downside rather than the current appearance of a failed breakdown.  If $60-$63k is met with massive selling, and $56k support doesn’t hold, we could be looking at the low $40k area.  

No scenario is off the table, and anything could happen, but these higher timeframe charts appear to be showing a lot of resolve for Bitcoin bulls at this point.

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