Bitcoin sold off aggressively on Wednesday, dropping over 5% at the lows.
It also completely wiped out Tuesday’s gain, which had erased Monday’s losses.
It’s been a very back-and-forth kind of week for BTC.
But zooming out on the 4-hour chart tells me all I need to know.
Although Bitcoin lost considerable ground on Wednesday, it hasn’t broken the chart structure.
In other words, the uptrend is intact, as is the $28,452 quarterly open.
That quarterly open is the line in the sand, in my opinion.
As long as BTC holds above it on the higher time frames, the uptrend is intact, and the chart structure looks relatively bullish.
However, this is not something I would long without confirmation from other charts.
Tether dominance (USDT.D) is one such chart.
USDT.D is attempting to reclaim the August trend line, and if it does, that area flips to support.
Tether dominance moves inversely to BTC, so getting overly bullish on Bitcoin while USDT.D is above the 6.7% trend line makes little sense.
We’re also seeing ETH trade below the critical $2,000 area, another reason I’m not ready to get bullish on BTC.
If ETH reclaims $2,000, USDT.D gets back below 6.7%, and BTC breaks above $30,000 (see below), I may entertain a long position.
But there’s no sense in getting bullish just because Bitcoin is holding support.
At the same time, I won’t short Bitcoin while above the $28,450 area.
I’ll only get bearish with a deviation higher up or a sustained break below the $28,450 quarterly open.
In summary, BTC is holding support so there is no short setup, but confirmation from other charts like ETH and USDT.D is needed to suggest another leg up.
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