It's been a while since I looked at BTC; a previous post about it was looking for a correction then more upside. That correction has since gone way deeper than I thought it would but ... it's a correction nonetheless.
Now that the all-important TZ2 has been smashed, price is just about at the momentum gap formed way back in December 2020. The thing about momentum gaps, that not a lot of traders pay attention to, is that they can act as considerable support, sometimes not allowing price to close it. Sometimes, of course, price will close and then bounce; on other times price will slip straight through, particularly when there is a lot of momentum behind the approach. Given the strength of the bulls when the gap was formed, I would anticipate a strong reaction from this level. Worthy of note though: we have the ABC FE127 (using the ABC123 indi) inside the gap, to act as both a strong magnet and possible support.
Should price break through, we have Fib projection and retrace clusters (drawn with the eWavesHarmonics Fibo Clusters tool) to look out for; again, strong magnets and possible support. I'm thinking this gap will be closed, going by the strength of the move down, but there will be a bounce coming, if not the start of a new move up, that should offer the bulls something to think about.
I'm looking to buy some more BTC for my Crypto portfolio (which has taking a bit of a kicking this year) but am hanging on just a little longer to see how price reacts to these levels.
There’s a module in the course about gaps if you’re interested. They play a very key part in my trading the lower times frames. Ignore them at your peril..