1) Has reclaimed and is above all key EMAs.
3) Holding above the 0.386 on a local Fibonacci. Hugging the line of the 3.0 on the macro Fibonacci. Both are positive signals of an uptrend.
4) BTC respecting an so far.
5) If BTC breaks out from the channel, 60k+ is in view, which would put BTC above the 0.702 on the whole April correction, which would confirm in my view that this is not a retracement rally from a cycle top, but simply a correction along the way.
6) It’s looking increasingly likely that BTC is not returning to backtest 50k. The only way I could see that now happening is if the BTC is currently printing breaks to the downside. Then we might see a pattern form, which would put 50k back in view. Not impossible, but it would necessitate strong and sustained sell pressure that would need to play out over one week at least.
8) Contrary forces: the DXY is currently experiencing a fairly strong bounce from 90.427 to 91.297 currently. But the US government doesn’t appear particularly concerned with maintaining dollar strength, so this could be a local bounce that is reversed.
Feel free to comment.
Particularly interested to hear from those who see indications of more downside potential.
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