Ironman8848

BTC - D1 - IN A CRITICAL SUPPORT ZONE !

BITSTAMP:BTCUSD   Bitcoin / U.S. Dollar
D1 : Yesterday's price action, after having reached a low of 53'400, recovered nicely and triggered a bullish engulfing pattern with a
closing level exactly at the bottom support line of the ongoing uptrend channel . Ongoing today's price action is showing for the time being
a reversal price action which of course should be confirmed this evening on a closing basis on this time frame.
Nevertheless, as you can see on this chart, BTC is currently traded in a critical support zone .
A failure to stay and hold above the uptrend support trend line (in green) would be negative and would open the door for the very important
support area , which is the clouds zone ranging from 54600 towards 49990 with the 38.2% Fib ret @ 51106 !

Therefore, I would suggest to monitor closely price action over the day on shorter time frames which will give you intermediate validation or invalidation
on the expected bearish scenario.
CONCLUSION :
BULLISH SCENARIO :
IN ORDER TO NEUTRALISE THIS ONGOING BEARISH PRICE ACTION, BTC SHOULD :
1) REENTER IN THE UPTREND CHANNEL AND HOLD IN IT
2) RECOVER AND HOLD ABOVE THE MID BOLLINGER BAND (58906)
3) CONFIRMATION OF THE BREAKOUT OF THE ONGOING DOWNTREND LINE RESISTANCE ( BEARISH PHASE IV)
BEARISH SCENARIO (EXPECTED)
AS MENTIONED ABOVE IN MY ANALYSIS

Technical analyst Expert since 1991. Member of the Swiss Association of Market Technicians (SAMT).
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