Mid 8s achieved. So are we done yet?
As those who followed my posts know, I was expecting for us to hit the mid 8Ks for a long time. Not because that was the only possibility, but because IMHO, it was the most probable one. Now lots of people will tell you that it has something to do with Corona beers (I believe) but the simple fact that this level was predictable 2 months ago, means that either I am psychic or the market is just acting technically.
Now, as you can see, we perfectly hit the middle of the green range, which is the area between 50 and 618 retrace. So, that should be it then right? All candy and rainbows from now. It hit where I said it would and now we go to 16K. Let's all buy longs x100 and order Lambos. Well, first of all: don't use high leverage. Secondly, Lambos are for idiots and more importantly: I am not sure we are done... I know, I know... How dare I argue with my own prediction? Well, the overall state of the markets has something to do with that. As I stated last week, crypto is not a risk off asset and therefore not a safe haven. Nor is it acting as one. Now generally during these sell offs, the market has a little relief bounce and I would not be surprised if this coming week sees us retesting a former support turned resistance around 9500. That is IF (!) we get there and don't get stuck earlier around 9.2K.
Now if we get to that 9.5 mark, everything is fine with the world again and we could end up at the 618 after all or, more likely, we might even go to the 786 or - heaven forbid - the 886. That would be the mid 7s to high 6s... Scary thought but if the legacy markets continue to decline in the coming weeks, that is what I would be preparing for. Now, if the news is better and legacy markets recover as well, this might very well have been a bottom and the race to 16K has begun. I don't know. There are no certainties in TA. My money is on a more steep correction after an initial apparent bullish recovery. This is where traders make their money but also where they lose it, so be careful. As always, trade wisely and trade safe.
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