↗️MARKET ANALYSIS↗️
VOLATILITY INCOMING
Bitcoin closed the monthly candle just above 94k at resistance. The monthly chart is looking healthier. The bears had a chance to take control at the 90k resistance level and instead BTC is consolidating above that major support/resistance zone. This is generally a healthy sign combined with BTC outperforming equities.
The concern is that BTC hasnt been able to close above the key 95.5k level which is both a momentum pivot and the breakdown candle from 26 Feb. If BTC rejects in this area it is the exact area we would expect a bearish retest to fail and form a lower high.
In any case there has been so little volatility on $BTC over the last week that I expect an explosive move to come in the early part of May maybe as soon as tomorrow
THE NEXT MOVE
While the market is sending mixed signals on the next direction, no one wants to hear “price could go up or down”. The conventional wisdom is to “sell in May and go away” but we might be in for a countermove move this month. 👀
To find the next direction I would look to the 4 hour chart I have shared to front run the daily close. So far BTC has maintained an extremely tight range between 93.5 and 95.5. A 4 hour candle close above or below this range would be an early indication of direction. I would look to go cautiously long or short on a 4-hour closure outside of the range and ride that to the daily close.
If BTC breaks to the upside I expect it to come suddenly on a strong impulse candle. This would likely not be a fakeout but a signal we are headed for 98k and higher.
HOW WE TRADE IT
We watch the 4 hour chart into the daily chart as I said above. To make outsized gains one of the strategies I like is to long strong coins at support and short weaker coins at resistance while BTC is still in the range.
My current long watchlist (at support only) are
💎$BTC $FART, $HYPE, $VIRTUAL and $TON
My current short watchlist (at resistance only)
💎$LINK $BERA $ADA memecoins, most alts. It is much easier to find an ugly chart than a healthy one 🍾
