The recent price action created 2 new bullish signals for Bitcoin:
– Yesterday’s move below $7,700 was a classic “Bear Trap”, which is basically a strong (fake) bear signal. Bear traps cause a lot of extra volume (the fake signal generates a lot of sells and shorts that will further have to correct their position).
– Today’s strong volume and rise above $10,350 are well above the breakout confirmation level ($9,250)
Short term volatility should remain high but filtering the noise we already have upside confirmation, so probably the breakout zone should be seen as a support level or an optimal re-entry zone for longs ($9,250 but don’t be too picky about it since volatility will be there). The main target for this up move will be around the year high of $14,000 but the mid-term context is bullish , so thats just the primary target, the ATH is still something that should come sooner or later down the line.
Strategy: Buy / Hold BTC
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