Over the past few weeks Bitcoin has had a very nice run after bouncing along the bottom support line in purple. On the chart I have drawn 3 blue arrows to show similar runs that we have had this year so far. The other two times the market has been coming back up it has fallen down. I don't see the market going back to bullish until the neckline of the inverse head and shoulders pattern has been reached. Although this run has been good so far I see a fall very soon back to the bottom purple support line. The MACD is about to fall back down into bearish and the RSI is currently falling from overbought. This run that we have had is also weak as it was manipulated in some way on the 12th bitcoin bounced almost $1000 in value. This is the only reason this run started in the first place. For bitcoin to reach the neckline of the inverse head and shoulders there needs to be a slow gradual rise.
Comment:
First support of this downward trend will be found at the first green support level of the MACD. Very possible will break below and test the second line. This will also be near the level of the downward trend line on the chart. This is where support will be at its strongest. A break below this however will confirm BTC returning to the purple support bottom
Comment:
Continuing toward trend BTC will reach the top of the downward trend line watch for support in this area if no support is found BTC will fall to the purple bottom support line