Grand Rising Traders,

6:59 am Friday, June 7, 2024

We've finally achieved that long-awaited breakout above the 70K psychological resistance after weeks of compressed consolidation. Price has been holding steady above that level, providing some validation of this move's authenticity.

However, we're not out of the woods just yet. While the breakout thrust looked impulsive initially, momentum has started to fade over the past few hours. If bearish momentum persists into the daily close, it could trigger a bearish rotation back into the range we've inhabited for over a month.

A breakdown from here, considering the effort already expended by the bulls, would be an ominous sign. It could accelerate a flush towards retracing the entire range, with potential targets around 65K or even 63K in a worst-case scenario retracement.

But I'm not betting on that bearish outcome unfolding just yet. As we approach the weekend, I'm anticipating the possibility of a momentum shift that could reinvigorate the uptrend and solidify this breakout.

Lower liquidity periods have frequently catalyzed volatile bouts in this market. With many participants on the sidelines, even moderate buying interest could rapidly compound into an explosive upside move as inefficient rebalancing occurs.

If that's the scenario that plays out, we could see price action accelerate towards testing the next major resistance around 73.5K over the weekend sessions. That was the November 2022 swing high that capped the previous impulse breakout attempt.

Clearance of 73.5K would open up the potential for a runaway move towards reversing the entire yearly range. However, I'm not getting ahead of myself. That level should provide a formidable supply zone and remains a major hurdle to overcome.

For now, I'm primarily focused on monitoring for a potential momentum divergence that could fuel the next impulsive upswing. As long as we remain above 70K, there's a chance the upside could be explosive if short-term selling is exhausted.

Have your plans ready to capitalize, but also be prepared to reset if bearish momentum resumes and starts breaking down back into the recent range. Don't overcomplicate it - respect the key levels and let price guide your action.

I'll reassess the situation over the weekend and provide an update on the potential paths following the weekend's price action. Stay focused, trade safely, and make the most of these volatile breakout conditions.

This is the Dark Sage, over and out for now. Peace!