BTC: Fasten Your Seatbelts!

The weekly chart looks very bad.
We see reversal candles with long upper wicks rejected severely from the 0.618 Fib. We didn’t even get above the 0.5 Fib on the closing basis. That’s pretty bearish signs.

We are breaking the rising trend line which has been keeping intact since the week of March 25th.
Also pay attention to the 7-Week Moving Average. This MA has not been broken to the downside since February. If this MA breaks (we see it’s breaking right now, but the week is not over yet), technically speaking there is no support until 7k.

So, what Bitcoin is doing right now is breaking a tremendous support cluster of the 7-Week MA, rising trend line and 0.382 Fib. If it does break, fasten your seatbelts! The weekly chart is definitely pointing toward continuation to the downside.

How low can we expect the price go?
Well, we can expect a correction to 8.5k due an open gap on the CME futures.
But here is something more meaningful: on-chain data shows support around 8k.
Also there is a significant area of support at 7.5-8.5k (horizontal levels and high volume node according to volume profile). 7.5-8.5k is going to be a point of major interest for buyers.

So, talking about prices lower than 7.5-8.5 is out of the question right now. Let’s get to that area first.


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The information given is never financial advice. Always do your own research.