Daily Report – Bitcoin and Market Update (February 27 2021)
Middaily session trading in the lower part of the range bound between 58k and 44k while intraweek price action still remains within the PTSD price shock effect. Current trend indication is bearish, yet I would certainly not feel safe while being short in such a strong bull market. Dips are for buying definitely. Local range bound between 44k and 52k gives 8k range of non-directional chaotic moves full of intraday traps, liquidity hunts. It tells me that whales are being active inside this zone. So far BTCUSD has seen 2 fake outs on the downside part of the range, which reflects whales’ interest in forcing over leveraged longs to close out their position to provide liquidity for whale players. Whales are buying the dip. It doesn’t necessarily need to mean instant reversal here. I expect BTCUSD to stay inside 40-60k range for next 3-5 weeks. Seasonality effects favor late March through early May to see strong bullishness for bitcoin historically. This aligns with the thesis of 40-60k wide range price action consolidating before tapping 70-80k targets, getting us closer to the peak of the bull market. My strategy of slow realizing profits and allocating them off crypto market has become even more valid. That being said, local support is at 43022 S1 + BVWAP level. Breaker high 54458 is the main level to be reclaimed by bulls in order to bring the unquestionable bullishness back on the table. Further resistances are 65895 and 72974.
BPRO for short-term traders may soon mark bullish change in the trend direction after successful reclaim over the baseline. Local BVWAP aligns with baseline resistance at 49.4k, which suggests this is the key area to break on intraweek basis to ensure 56-58k supply area retest. Until that happens, price may see another series of fakeouts and whale games trapping unskilled short-term traders (90% of short-term traders are unskilled…). Breaker Low at 44977 serves as a support and in case it’s reclaimed with daily close below this level, this may have further bearish implications towards 39-42k demand zone retest of previous peak. It is worth noting that NUPL + Realized PL + Deposit spikes precede the local reversals with quite a decent accuracy as attached below. For those who missed my yesterdays premium webinar about BTC, ETH, LTC and market conditions, please catch up ASAP with the link below to understand this report fully. Much loves everybody. God bless you and stay safe!