Yesterday morning, bitcoin had a rally from 59,000 level and all the way up to 62,000. Shortly after, there was a massive whipsaw with a strong drop down to 57,600 and immediately back up to 62,700.
After the whipsaw, btcusd started to range, which is where it continues to trade. Right now bitcoin is trading around the 61,000 level. If we look at this from the daily timeframe, we see an apparent descending bull flag.
I expect this pattern to break to the upside. Using a measured move from the inception point of the pole, the target for this is just around the 95,000 level. Needless to say, this won't happen overnight, nor without retracements, but I do think the target is likely to be reached before the end of 2021.
If we zoom into the hourly chart, we have some solid places to look for possible long trades. The closest range value area low just around 60,400. The larger range value area low, around 59,700 and finally the lower trend line of the flag itself. We also have yesterday's point of control at 59,005 and the key level mentioned in yesterday's post at 57,500.
I am looking to get in long at 59,700. Should we continue down from here, I will look for another possible long at 57,500.
I am also looking for a possible short scalp around 63,050 and 63,900. Here I am looking to get stop loss to break even relatively fast.