Bitcoin bulls have been fighting hard recently soon as we saw a break past $9.2k. The recent move down to the 38.2% fib retracement gave the bears a chance to strike once again but it appears that the bullish momentum is not broken yet and the bulls can still push the price higher from current levels to $9.5k or higher.
It is important to realize that we don’t have to be in any sort of rush to short BTC/USD. Thera are a lot of traders trying to short the market around $9.3k and slightly higher which is not a good idea. It is always important to wait for confirmation of a trend being broken. So far, the uptrend is not broken. With an approach like that, worst case scenario, you end up losing a few percentage gains, best case scenario it is a good trade with the trend on your side.
The recent move in this market has everything to do with the uptrend in the S&P 500 (SPX) which is why it is important to talk about that. The cryptocurrency market would not have rallied like this if it weren’t for the S&P 500 (SPX) printing a series of higher highs and higher lows as we expected. The EUR/USD forex pair did the same and flipped a key resistance as support which provided the impetus for it to rally higher. So long as these uptrends remain intact, it is unreasonable to short these markets or the cryptocurrency market.