You have to see what’s happening
in the Bitcoin price this Sunday,
as we just saw this new weekly candle
closed with a full body below
the $61,844 resistance level.
All weekly candle so far has maintained
bodies below this major resistance.
And Bitcoin on the daily chart is actually
giving us a very clear
schematics to draw off of to predict
what the next move is going to be.
And the reason I say that is,
notice how tight of a range we’re in right
now to get confirmation
of upside or downside.
We’re watching 61,844, of course.
But then we’ve also got the previous
weekly open at 60,800,
which is just below the weekly
and monthly open that just opened up.
And so this is a very tight
price range 60,800 to 61,800
that Bitcoin is currently in.
And if we’re able to get some hourly
and four hour Kindles
closing above 61,844,
I think that the likelihood starts
to increase, that we’re going to start
to see price discovery, as you guys know,
as I’ve been talking about with this
extremely important level.
But if we start to come below 60,800,
that’s when I would start having some
concerns for a potential
downside scenario to 58,300.
And then, of course, the next level
of support below that is 50,000.
But first we have to monitor this
extremely tight range for Bitcoin
between 60,000 $861,800, as that is truly
becoming the most important
range to predict what this
next move is going to be.
still showing some strength with the US
dollar pairing and the theorem to Bitcoin
pairing is really what
we’ve been monitoring.
And because we got back above all
daily moving averages recently
with the theorem to Bitcoin chart,
we’ve seen some strength here
But the one concern I have right now
is with Bitcoin dominance rising.
All coins that are factored in outside
of Bitcoin and Ethereum are showing a lot
less strength than Ethereum right now.
And so we have to look at this
in two different ways.
We’re either seeing Ethereum to Bitcoin,
which usually acts as a leading indicator
signaling that despite Bitcoin dominance
moving up, there’s still a potential
for all coin dominance to rise in total.
But if the theorem of Bitcoin chart starts
to show any signs of a breakdown,
we’ve already got a lot of weakness
here with the other altcoins.
That could certainly be a negative
snare for the all coin market.
But this is a very big deal to me, because
Bitcoin dominance is certainly moving up.
And the question is,
how is the market going to react
to this move to the upside?
Now, if we look at the weekly chart
for Bitcoin dominance,
notice how we have our first weekly candle
fully below the 20 week moving average.
That is a very big deal.
We want to monitor this because if Bitcoin
dominance is truly seeing strength
in the macro at some point or another,
we’re going to start to see this move
back above the 20 week moving average.
There really isn’t much
more room to see this
come down to still assume that this is
truly a reversal for Bitcoin dominance
in the macro,
because if we start to come below the 20
week moving average,
that starts to negate that thesis.
So we really want to start monitoring
this Bitcoin dominance chart this week.
And when we look at the traditional
markets tomorrow, we’ll start to really
just kind of dissect the DXY.
And what’s happening with the S Amp 500?
Because S Amp 500 has been moving up,
the DXY did close a very interesting daily
candle here on Friday
with a bullish engulfing coming back
above this major level of 93 point 82.
If we start to see continuation
for the DXY, that’s obviously not going
to be a good thing for the markets.
But if we start to see this come and slow
down, that’s going to be what we’re
watching here into this week.
And then, of course, we’re all
going to be monitoring this goal
to Bitcoin chart as well,
to see if it can give us some hints as
to the momentum Bitcoin is going
to be seeing here right now.
And of course, we have this
50 day moving average.
It’s extremely important with this
price action now below
the 50 day moving average.
That’s a very positive thing for Bitcoin.
So we’ll continue to monitor this chart.
It was a very nice chart to monitor when
Bitcoin first moved up to the $60,000
and it gave us a good idea of the momentum
that Bitcoin had at the time,
and it started to move above
that 50 day moving average.
We started to say, okay,
this is now losing some momentum.
And so we’ll monitor
that goal to Bitcoin chart.
Very interesting range here for Bitcoin,
and it’s really doing exactly what we
talked about a few days ago where
we saw them move to the upside
like we did before.
And then we just kind of channeled
sideways for a bit before seeing
another move to the upside.
with Bitcoin at the $61,844 level, we’ll
have to continue to monitor that level.
The more hourly and four hour candles we
get below or above that level,
the more hints we’re getting
as to what the next move is.
So I know this is a quick update.
I’m here in Mexico, actually,
and I had a flight, as you guys know.
So I was at the airport yesterday,
but still on with the content, as we
always are here on the Cypress Channel.
I’ve been loving the discord.
By the way.
We’ve been getting a ton
of charts being posted here.
Url Seven, one of our best
contributors posting this
Elliott Wave analysis.
I guess you can call it.
And we’re seeing a lot of talk right now
with different all coins
and people making profits.
So that’s always a good
thing to see in the markets.
It’s going to be interesting to see
how the $61,844 level holds up.
We really just want to monitor these four
hour and hours hourly Candles the more we
get above and the more that we get below,
that will give us a hint as
to where this wants to go.
So thank you all for tuning
in today until next time.
Snipers out bye.