As I’ve talked about over the past few days, we are forming a short term downtrend, depicted by the trend line that price clearly rejected from today. Now that we have a clear short term trend once again, the TA over the next few days should be pretty simple.
If we see a breakout above the trend line, expect a rally and a retest of resistance sitting around $65.7k, which also happens to be the beginning of our macro resistance range.
If we continue to see this rejection from the downtrend, then expect price to retest $62.5k. If that level breaks, then expect $61k to act as the next strong level of support.
Tomorrow is the monthly candle close and open, so I wouldn’t be surprised if we see some strong volatility throughout the day. Keep a close eye on these levels!
