The bulls showed themselves
Last week, I was expecting a Bitcoin rally to the 8000 level, and after accusing the bulls of being frightened, they showed themselves aggressively. I would expect that rally to wake up more bulls and then the bears to short it big. You can check my bullish theory from last week when I was targeting 8000.
Falling wedge pattern
If you look on the 4-hour chart, that rally wasn’t a big surprise; it actually completed the falling wedge pattern. In theory, when the price breaks the upper trendline in a falling wedge, we can expect a reversal. It looks like the crypto sharks are also making by-the-book decisions.
At the time of writing, Bitcoin prices are consolidating around the 8000 level. Even if it looks like a bullish momentum, I wouldn’t go long right now. I would probably wait for a big red candle to break that 7500 level and then open a short position targeting 6000.
I am not expecting the boys to short it so fast. They will wait for more buyers to show up. If we really see more buy orders coming, BTC prices could even reach 9000 before dropping again.