Today, Bitcoin closed the day above $63K, and that’s bullish.

Let’s talk about why. The chart below is the one to refer back to:

1. Bitcoin is making a potential higher low

In Tuesday’s newsletter, we commented how several alts were making higher lows, and we were looking for bitcoin to do the same thing.

The bounce at $61K has the potential to be that higher low, since it was a noticeable low on both price and RSI.

Bitcoin has also been correcting for almost 60 days now, which is enough time for a potential low to be in.

2. Bitcoin reconfirmed the $61K as support

$61K is both our range low, and where the 100DMA comes in.

Last week, price tore through both these supports—which was concerning—and then quickly recovered.

Today, price bounced off those supports. What we didn’t want to see was those supports turn into resistance because it put lower targets on the table.

3. The candle’s bullish engulfing.

This close was particularly strong because the candle was bullish engulfing, meaning it close above where the previous days red candle opened.

What we’re watching next

As always, we’re not out of the woods. There’s a few things we’re watching for:

1. Will $61K continue to hold as support?
   If we start closing below the 100DMA and $61K line, we’ll probably start to get more bearish again.
   

2. Can price flip the 50DMA ~$66K from resistance into support?
   The 50DMA still hasn’t been tapped since it was broken in mid-April. It’s the next thing we’d like to see price regain. Price might follow the wicks from Monday and Tuesday up there.

   

   Path for price to flip the 50DMA into support

3. Will the general markets (S&P / NASDAQ) make new all-time highs?
   Bitcoin is still correlated with general markets, so if the S&P and Nasdaq fail to make new highs, it’s likely bitcoin will too
   

   

   S&P 1-Day Chart

Here’s a bullish tweet to leave us with:

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Disclaimer

The contents of this newsletter are expressed in my opinion only, none of which is financial advice. Always do your own research as this information is intended for educational & entertainment purposes only.