We are long from 37,550 and shared another idea that will be in play upon the break of 36,450. As long as the 32.5 support level continues to hold, Bitcoin is likely to squeeze higher in the coming week. Such a squeeze can lead to a test of the 40K range high and a break out should take price into the 45 to 46K area at least. This would be the follow-through of a Wave 5 of 3.
IF Bitcoin breaks the 32.5K support instead, it increases the chances of a test of the next support which is 27.5K. IF this support is compromised, Bitcoin will then most likely be in a broad Wave 4 consolidation. A good example of such a formation is a Gold chart from the August peak to the December low. It can linger for weeks.
All markets are driven by irrational forces of greed and fear. Trying to figure out “why” it is retracing will not help you make better informed decisions. Price information is the purest form of information we can gather and evaluate because it is a reflection of all the known information in the world at the moment.
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