After the CPI Report was released this morning, everything dumped. However, BTC fully recovered back above support within the bear flag. Most trader sentiment is short and given the oversold conditions, this makes for an ideal contrarian long play until the Fed announcement on July 26th. I have three price areas that I am targeting.
TP 1: $23,000 - top of the bear flag
TP 2: $24,000-$26,000 - Most traders will be holding for $30k, so a reversal here could leave a lot of bag holders
TP 3: $28,000 - $30,000 - The ideal outcome for the bulls. I will probably cash out a little before $30k
The Fed is expected to announce a substantial rate hike to curb inflation, which will likely send all markets tanking. I will be out of this long trade before the 26th. But if BTC fails to this support level, I will exit. We are at an inflection point here at $20k so whichever way we decide to go, we should move quickly.
TP 1: $23,000 - top of the bear flag
TP 2: $24,000-$26,000 - Most traders will be holding for $30k, so a reversal here could leave a lot of bag holders
TP 3: $28,000 - $30,000 - The ideal outcome for the bulls. I will probably cash out a little before $30k
The Fed is expected to announce a substantial rate hike to curb inflation, which will likely send all markets tanking. I will be out of this long trade before the 26th. But if BTC fails to this support level, I will exit. We are at an inflection point here at $20k so whichever way we decide to go, we should move quickly.