Now let us talk about a few things first, Bitcoin has had a crazy few days.
We went from 4000 up to 5300 in a matter of a sneeze. It was that quick and it caught everyone out, or did it?
What we knew is that with the ‘freefall’ movement in November 6K down to 4K we had no support hits and the market did not retrace it back, it took a very long time but it has finally happened, now in April.
We have this image above, the Bitcoin channel it was stuck in for a little while, more often than not something tends to happen when these channels hit the edges, you can see when it hits the bottoms and tops it moves. However, we had a massive push north ending at 5300. Crazy right? This is crypto after all.
But where can we go from here? We need to discover if the MA200 is actual support, this is the first time we have closed above this zone since March 2018. Over 13 months now, a big indicator of bullish behaviour. However, I do feel we will retrace to at least that region.
I have 3 potential targets as to where we could retrace too.
One is based on the daily support of the MA200 which is key I mentioned it above, the second one is the 382 fib on the latest rise and the last one is the start of the entire move back to the start which would confirm it as a bull trap.
If you want further information on why I am a little bit more bullish than bearish right now please check out this video.
So how much are you willing to bet on a retracement from here? A lot of people are going long but it looks like the bigger players are hedging short for a support retest. Lets see how it pans out.