Why We Should Be Wary of the Bitcoin Rally

Bitcoin has retraced from highs at our target of $45K. Exactly as we anticipated in the reports yesterday, we are finding support in the $43K handle, with two strong levels at $43.1K and $43.8K. The Kovach OBV has dropped off, and was not too strong too begin with, signalling skepticism in this rally. We are still not convinced Bitcoin can hold these levels, and if not, then we should see further support in the $41K's then again at $40K. If we are wrong and we see another leg to this rally, then we must first solidly break $45K before establishing value at higher levels. We will see strong resistance just above our target at $45K, but if we can break through that, the next target is $47.4K.