BTC Nearing a Supply Zone - Expecting a pullback / consolidation

2 mag 2020

• BTC has done well recently and has developed an important short term positive trend - interesting that this has correlated positively with the same US Market Uptrend.
  
  We expect price to Consolidate or Pull Back at the overhanging supply zone.
  
  This is also supported by an Tom Demark 9 Overbought signal and an increase in the Long Short BTC ratio. Technically we are at the top of the Longer Term Andrew's Pitchfork (has gone a great job of defining current price action) and the Shorter Term Linear Trend Channel.
  
  This is Not a time to add additional longs yet - more of a time to take profits or ride the trend until you get taken out. A great place to get long would the below Demand Zone or a the bottom of the Linear Channel.
  
  BTC can provide diversification in a portfolio - however BTC isn't a defensive asset and if the S&P 500 sells off we don't see institutional money flowing into BTC given the present global recessionary environment.