Bitcoin - The Reclaim
Are Alt Seasons Getting Weaker?
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Bitcoin - Key Reclaim In Progress
Bitcoin has enjoyed a Weekly Close above $114k (black) which now means price is pulling back for a retest of said level into new support.
As part of this pullback, price could retest the $114k level into a volatile fashion which could open up the possibility for downside wicks below $114k, as long as the next Weekly Close occurs above $114k.
As part of this Weekly reclaim of $114k, Bitcoin is trying to build a cluster of price action on the Daily.
In fact, last week we spoke about how Bitcoin was on the cusp of breaking its Neckline of inverse Head and Shoulders:
And that Neckline breach has already occurred:
More, we mentioned how a Daily Close above the Mid-Point of the Bollinger Bands would see price rally across the upper portion of the BBands:
And indeed, Bitcoin broke out all the way to the very top of the Upper BBand:
In fact, this is where price is now rejecting, which makes sense as Upper BBands tend to act as points of rejection most of the time.
This rejection is effectively forcing price into a retest of the $114k level:
The black level is the Weekly $114k level superimposed on the Daily timeframe and price is now pulling back into this region.
The green circled cluster showcases what sort of retest BTC needs to soon perform and it also highlights how volatile that retest could be.
Granted, this current cluster (orange circle) is building a little higher than the previous one (green circle) which could impact how long the downside wick below $114k could ultimately become.
After all, in the green circle BTC was able to downside wick into the $113k region (red box, which is effectively the Neckline of the recently broken inverse head and shoulders).
Whereas because this current cluster (orange circle) is building a little higher up, it's not clear if price will be able to downside wick all the way into the $113k area (red), even though that would make sense from a technical perspective in the form of a post-breakout retest of the Daily Neckline.
Overall, BTC needs to retest and hold $114k as support on the Weekly and any downside volatility below it would likely end up as a wick by the end of the week with the new Weekly Close.