Bitcoin's Reentry into the Range: Deciphering the Next Move
In our previous post, we explored the possibility of a long entry around the 0.382 retracement level from the recent swing low to swing high, specifically at $28,897. This level was also relatively close to the current range's Value Area High (VAH). We discussed that if the price remained below the VAH for an extended period, the Point of Control (POC) and potentially the Value Area Low (VAL) could be the next targets. Now, let's examine how the situation has unfolded and our current trading plan.
Price Development and Current Market Position:
The price did indeed drop, slicing right through our anticipated level without any reaction. This lack of response eliminated any incentive for trade execution, leaving us flat with no open positions.
As we predicted, the POC became the next target once the price dipped below the VAH. Subsequently, the price descended to the golden pocket and POC, where it currently trades.
The Game Plan:
Sidelined for Now At this juncture, there is no compelling setup to act upon, prompting us to remain on the sidelines. We remain open to both bullish and bearish possibilities outlined in our recent posts, and with the recent drop back into the current range, we're leaning slightly more towards the Elliott Wave count (found [here]). In summary, we anticipate further downside and will scout for potential long trades in the $24,000 - $25,000 range, and possibly the 23,000 level, should price move all the way down there.