Bias: possible reversal area – short term bullish
On a daily time frame, we’ve seen what could be best described as higher highs, as well as a clean breakout of the current range resistance which we have been stuck in for the last 20 days.
Bullish & Bearish Scenarios
Bulls
Following the blue path, would a potential scenario if we see considerable strength from bidders. We would be looking to see no lower lows from here leading into the weekly orderblock resistance area. This is the key level to break next in the run up to the high $30k ranges next.
Bears
A breakdown of this range resistance area would be the catalyst for downside. Targets here would be new lows from losing this key area.
Macro Landscape
US Equity Markets
Both the S&P and NASDAQ, have shown similar recent strength and are pulling back in a similar fashion – waiting to see if the bulls step up, or if we are going to see markets across the board breakdown further.
Key Data
The next most impactful data is around US unemployment figures on the June 3rd 2022. Previous unemployment rates were 3.6% and it is expected that this will drop to 3.5%. Any better than expected rates here could push sentiment more bullish across markets.
What do I think?
Price interacting with the range resistance in the manner it is right now on the 4-hourly chart, is offering a relatively low risk entry to at least run trades to the previous high and take profit around $31,500. This should also offer good short term opportunities on altcoins.
At this stage will need to see what plays out to lock in any potential for a long term trend reversal. There is a need for equity index such as the S&P and NASDAQ to lead the way with further strength. I would stress the need to have stop-losses in markets like this, to ensure if you are risk-on, you’ve capped any potential downside risk.