Riding The Wave Weekly Outlook #5

Retesting $40,000

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Table of Contents

1. Where are we Short-term?

2. Where are we Long-term?

3. Supporting Evidence

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Where are we Short-term?

Bitcoin is currently testing support at the $40,000 mark where we have found support in recent drops. It’s important that we are at this price point because we are already below the indicators we usually find as support (8 week, 20 week, 50 week) during a bull run. This means that this price level is more important than when we are testing a price point above the moving averages as they provide more potential safety points for the market to bounce off of, recover, & safely continue moving upwards.

Within the short term, I am still looking to see if we hold within the red box (an area we have previously bounced between throughout this bull run) or if we will see a sustained break downwards or upwards.

We are at 2 hours floating just under $40,000 which is likely due to people being more nervous/cautious this time as its the second time we have moved down to test $40k in the past 2 weeks and the 3rd Since September

From here there are a couple of possible scenarios:

• Bitcoin holds $40,000 again further increasing support at that level & increasing market confidence making it more likely we see a return to bullish market sentiments.

• Bitcoin drops further below $40,000 than we are currently hovering but jumps back up before the week is over, holding support.

• Bitcoin drops down and it is sustained over the next week. I would view this as a bearish event for the short/medium term although I would likely buy up the dip. This outcome would also increase the odds that this bull run may be over early and the indicators may have been wrong.

Small note, when I say “hold” I am specifically looking to see if we move back above $40,000 within the next week. Bitcoin can briefly go under $40,000 and still be considered as having held that range. If it closes under it (as in the weekly candle closes ends under that price point) I would view that as a sustained drop.