Good Morning. What a busy few weeks we have had here in crypto. Our last BTC report came out on 5/17, where we made several observations. We would like to follow up on a few of these points and review our remarks:
“3. Our retracement target of $8700 has not been reached and remains the level to watch in the near term. The next target being 66% retracement to high $13,000’s.” Since this report, we HAVE breached our initial price target of $8700, which only lasted a few days, after which a small pullback has occurred.
This $8,000 level seems to be a battle ground of which initially was resistance from May 12th-23rd but could potentially turn into some support. IF this level holds, our thesis that “Dips are to be bought from now on until proven otherwise” would remain intact, and our next price target would be $13,000.
As we sometimes are proven incorrect, our intuition at this moment tells us a different story, as we explained in our piece on 5/17.
“5. Given the trajectory of the rally we would not be surprised if a correction is imminent. The levels to watch are $6000’s and even $4500. If we are not making a new low even getting to $4500 level keeps the strategy in the accumulation mode.” A pullback on lower volume would tell us it’s a healthy selloff and that accumulation on dips would be advised. If a selloff precipitates under massive volume, and that $6,000 support is broken, we can test the next level of the low $4,000s.
As we saw last month’s BTC rally slice right through what we perceived as “clusters of resistance,” we would not be ‘shocked’ if the same thing happened on the way down.
On a final note, we saw these “whale alerts” on twitter last night around 6:45PM EST, after which the market sold off roughly $150. The same BTC amounts were then withdrawn a few hours later. This price action goes to show a few hundred-point move is just noise, and can easily be moved off of tweets and rumors.