Still pretty choppy out there, eh?
There’s some clear demand at 40,000, with buyers continuing to defend this floor.
We’ve been vocal that this has the characteristics of a bear trap as on-chain accumulation heats up, sentiment is in the dumps, and prices are at a logical level to dig in and find support, which is what is taking place.
But in that same breath, we’ve also been anticipating choppy action in the near term as this demand gradually absorbs all this overhead supply. There’s nothing wrong with waiting for a higher conviction entry back above the 46,000-47,000 resistance band knowing that things are well on their way higher. It all comes down to your timeframe and market plan.
Otherwise, if we break below 40,000, all bets are off, and the bias is lower back to 30,000.
It’s also worth paying to traditional markets.
Particularly in the last few weeks, Bitcoin has traded closely with the broader market.