As we can see, that 200EMA on the daily chart I talked about yesterday has officially been broken with STRONG momentum, which is a MASSIVE move for the bulls.
This level breaking does drastically shift the probabilities of a strong reversal continuation on the MTF and even the HTF. A few things must happen before we see this rally continue.
Clearly, every LTF, MTF, and most HTF charts are showing very overbought conditions on the RSI, which is a sign that this rally is likely going to see a pullback eventually. But what really matters is whether that pullback creates a higher low.
If we see price come back down to $71k to retest this 200EMA on the daily and then continue higher, it’s likely that we have seen the bear market bottom form. But if we come back down to retest $71k and break below, the odds of the bear market bottom being in are still not quite there.
As always, I’ll be keeping a VERY close eye on these levels throughout the week. These are the times to pay the closest attention to!!
