Bitcoin Sell Signal To What Support?

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Updated: Aug 25, 2021, 06:43 UTC

Until today price has been slowly working its way into the 50K resistance zone. I have been warning about the risk of retrace around these levels, even in the face of buy signals. At the moment, a new sell signal is in play, and the question is: what level can this lead to before a new buy signal appears?

The support levels that we are anticipating are: 44K and 41K. IF price manages to test one of these areas and produces an appropriate reversal, we would be prompted to share a new long swing

What if these levels break? Then 37K and 35K are the next levels to consider. Keep in mind, timing markets is not about “predicting” where price will go, it is about ADJUSTING as price establishes new levels or provides actionable information around a predetermined level.

Part of the adjustment is evaluating the reward/risk relative to the price structure. At 50K, the reward/risk was NOT favorable for longs which is why I had NO interest in putting on any new positions there.

44K and 41K are much more attractive since the next leg higher off of such a level can offer a potential of 6K points while keeping risk limited to about 4K points.With a ratio greater than 1:1 along with a reasonable probability that price can retest the 50K resistance is much more practical.

Since Bitcoin is the leader, the majority of alt coins that follow Bitcoin are likely to behave in a similar way.

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