XBT/USD: Not going to guess, BUT REACT to these levels.

25 בינו׳ 2020

If we look at the daily time frame, we can see that the uptrend is still intact. We've had a healthy pullback and we're trying to maintain a higher low above $8,200. So my bias is as long as we hold this level, we can potentially form a bottom here and push towards resistance. It just so happens that $8,200 lines up with fib level 0.618.

So, two scenarios:

1) We hold this level, with the expected liquidity wick as usual, and we push towards $9,190 (most apparent resistance). Probably forming a lower high somewhere around $8,800-8,900.

2) $8,200 does not hold and we test psychological level $8,000. If that does not hold, our nearest strongest support level is $7,750ish. In this case, I'd flip my bias and go short and cover around 7750.

We're here to react, not to guess.

XBTAll the best!