Supports -> S1: 9,900 & S2: 9,300
Resistances -> R1: 10,900 & R2: 11,700
Supports -> S3: 8,800 & S4: 8,000
Resistances -> R3: 12,300 & R4: 13,000
Bitcoin has plunged down from $11,500 to $9,500 in barely 48 hours. A decrease of around 20% during the last week.
As we can see in the chart, BTC is making lower maximums, which is a sign. However, the minimums are slightly increasing, which is a indication.
If the price keeps putting pressure on S2, we can see a larger correction. but, if the minimums keep increasing, the trend can reverse.
Bitcoin currently finds itself in the lower band of its channel (orange line) and is probably performing a . During triangles, the price bounces up and down between the range, which gets narrower every time. We can use this lower line of the range to open long positions by using the indicator Percent Change. By setting a percentage, i.e. +1.8%, once the price is near the lower band of the channel, if the price bounces back up, the bot will open a long position automatically.
As we have said, the price can be making a triangle and every time the price touches the lower band of this one, the price is very likely to bounce back up. It is possible to spot several hammers once the price hovers around that area.
A is a reversal pattern. It is represented during a downwards trend and as a candle with a long lower wick and short body at the top. Therefore signalling a buy.
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