A tough week is awaiting us: is this the time to turn bullish?

16 พ.ค. 2022

I have chosen to delay the post (again) to Monday in order to have a clear view of how price is moving in this new week. Firstly, I want to mention that all my bullish scenarios got obviously invalidated, so this is the best time to start from scratch. Bitcoin has retested levels that I personally wasn’t really thinking it was going to touch.

There was a fairly strong rejection at 25K, driving price back around 31K, which was tested as support last week as well. I also wanted to point out 2 VWAPs: the one anchored at 40k previous swing high and the one anchored at the 25K low. Both have held ever since they started, so it’s a good idea to take them into account for a breakout.

Now that shorts seem exhausted, and we broke the trend line, it may be time for BTC to retest above the current lows, and then run to around 33k and consolidate at this level for the rest of the week.
Contrarily, in a more short-term bearish scenario (which I’ve been seeing less and less likely over the last days) we would go 25k.

Lastly, don’t forget that the economic fundamentals haven’t been really good lately, with a CPI neutral release (8.3%). With all of that said, stay tuned for the next post and keep your capital safe!