Today’s update will be on BTC chart, Bitcoin broke out of its over the weekend creating a gap. Gaps tend to get filled sooner than later, but will BTC hit lower levels first?
Points to consider,
- Trend testing major support
- Resistance at .786 Fibonacci
- Stochastics in lower regions
- approaching support
- EMA’s crossed
- below average
Bitcoin is sitting on a key support which has multiple technical confluences, the .786 Fibonacci level and the neckline. This level needs to hold as it is the last hope for the overall bias. Strong resistance is found at the .786 Fibonacci level that was not broken. This resistance is just above the gap that will get filled at some point, leading to a possible retest of the staunched resistance.
The stochastics is in lower regions at current given time, lots of stored momentum to the upside but can stay in lower regions for an extended period of time. is approaching its support which must hold, a break will confirm BTC testing lower levels of support.
The EMA’s have crossed but is yet to meet price, this will pose resistance to Bitcoin if it fails to hold support. is well below average, very dry, which needs to pick up. An influx of will determine the direction of Bitcoins next move.
Overall, in my opinion, Bulls are looking weak here as price comes to test key support. has been low ever since, the buy pressure is just not there. BTC is more probable to test lower levels of support before filling the open gap.
What are your thoughts?
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“If you can’t take a small loss, sooner or later you will take the mother of all losses.” – Ed Seykota