Bitcoin: HODL?
Bitcoin has maintained its footing in the $8K handle, clinging to the range between $8.3K and $8.6K. Although it seems complacent at these levels for now, a consolidation of volatility usually precedes a breakout in either direction.
The Kovach Momentum Indicators have not changed much on day charts. They are still quite bearish. On 30-minute charts, the Kovach OBV has edged up, while the Kovach Chande has dipped back to baseline. On day charts, we seem rebounded from the lower bound of the KRI at $7.3K and are roughly half way between this and the central moving average of the KRI which is a strong sign. It appears likely that BTC will at least test this central moving average.
Elliott Wave analysis remains the same as before. We must be in some sort of corrective phase. If bearish momentum persists, we much adjust the major corrective cycle further if we break past $5.9K. If we correct past $5.5K, we must concede the bull impulse entirely. On the 30-minute chart, we know we are not in a corrective phase to a bear impulse if we can break $9.7K.
BTC has continued to hold the $8.3K to $8.6K range, which is very narrow. We seem to be finding some support at $8.1K, which is a level BTC has obeyed in the past. The levels $8.5K, $8.6K, and $8.9K are still the nearest levels from above which will provide resistance, while $8.3K, $7.5K, $7.3K, $6.9K and $6.1K will provide support from below, though as you can see there are large vacuum zones in between.
CONCLUSION – Bitcoin has clung to the narrow range between $8.3K and $8.6K. It has firmly rejected the $7K handle, but some retracement from these levels might be anticipated before another push. Investors wishing to play the range may consider entry at levels from below like $8.3K, $7.5K, or $7.3K, with profit targets at $8.5K, $8.6K, or $8.9K.
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