BTCUSDT broke three trends in the last 7 days. The closest horizontal support I see at $ 45,000 (-10% from here) but not all is lost. There is a good bounce happening that may allow us to make a third trend reclaim, plus we are bouncing off the 100MA and 100EMA at $49,500. We can see that in the previous market cycle of 2017, the 50 Day MA acted at least 6 times as excellent support, but when it failed, the 100MA stopped the dip in most cases.
I believe that if the price returns and closes daily above the trend and above the 100MA and EMA ($ 50,500), there may be another solid bullrun without serious consequences. If instead there is no strong bounce and we close the daily below $ 49,000, I think the only option would be to fall to $ 45,000.
BTCUP also supports this idea as seen below.
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Nice rejection for the second time to the 3rd trendline!
nice post. if the bounce happens, and i think it will, what are your thoughts on this creating a head and shoulder topping formation pattern?
Carbon-Investments
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@SheepTrades, Thanks! I think what you say is very likely. If for example price reached 61k again around May 5th, then bounced off resistance for a couple days and made another try around May 20th, the head and shoulders would be made apparent with neckline at 61k, which may also be seen as an ascending triangle formed between the neckline and the third trendline.