Are we near the bottom yet? Really, no one can say for sure. But we can use Technical Analysis to pick out the best bets!
In my previous
BTCUSDT
analysis, I pointed out that the accumulation phase could be over, or nearing completion.
Usually capitulation is a sign of people losing faith in the asset, and selling it at a loss. After capitulation, bulls usually pick up the asset at an amazing discount. If you go back to that analysis, and play it forward, you will see the green (buy) volume spike shortly after the sell spike.
However, none of this means there won't be more drops, and this analysis is a perfect example of that. Let me briefly explain:
For your convenience, I also market down the next 3 support levels. These are the levels you should expect a reversal towards the current resistance.
In my previous
BTCUSDT
analysis, I pointed out that the accumulation phase could be over, or nearing completion. Usually capitulation is a sign of people losing faith in the asset, and selling it at a loss. After capitulation, bulls usually pick up the asset at an amazing discount. If you go back to that analysis, and play it forward, you will see the green (buy) volume spike shortly after the sell spike.
However, none of this means there won't be more drops, and this analysis is a perfect example of that. Let me briefly explain:
- The first thing I would like to point out is the thick orange lines on both the price & RSI charts. This is a hidden bearish divergence, which is a bearish continuation pattern.
- Next, we can see that the price is loosely using the 50 moving average as a resistance. Another bearish indication
- Lastly, the price is moving in the downwards channel, marked by the blue lines. The price is expected to bounce between these lines until a breakout.
For your convenience, I also market down the next 3 support levels. These are the levels you should expect a reversal towards the current resistance.
Comment:
I would round the bottom two supports to the nearest thousand to be in play with physiological levels. i.e $3500 & $3000 respectively.
Comment:
psychological levels* (damn auto correct!)
