Bitcoin Now Light as A Feather. Is $3K Stiff as A Board? (BTC)
Hi friends! Welcome to this update analysis on Bitocin!
Looking at the daily BTC chart, you can see that a gentle breakdown of the third bear flag has occurred, just as I had projected in the last analysis. You can see that the breakdown was also initiated by resistance at the 10 EMA (in blue.) As I said before, since the 10 EMA has been so resistive during this decline, when we begin to see candles close above it, that will likely indicate that some sort of a rally will ensue. If/when that happens, we will have to assess indicators such as momentum and volume to understand the upside potential. So, for now, we can assume that the 10 EMA will continue to act as resistance until it doesn't.
Furthermore, we still haven't touched the $3000 level yet, so it will be interesting to see how BTC responds when that level is contacted. Given the fact that volatility is contracting as price declines toward $3000, and given the fact that momentum is decelerating, I'm starting to think we may see a rather uneventful test of $3K. It's a level that definitely would produce a strong bounce, if price had slammed into it. But we're practically at $3000, and we are seeing very little movement. Buyers aren't entering the market yet. That's not to say that they wont. I'm just saying that they haven't engaged the market, despite how close we are getting to $3000.
If the buyers do show up, and we see a surge above the 10 EMA, on nice volume, there is a potential for BTC to rally all the way up to the 50 EMA (in orange,) which would be somewhere up in the low $4000s. On the other hand, if BTC just flops around on the $3000 level, and the buyers don't show up, this thing could really start to tank. My major downside target is in the $1100s, if $3000 is lost. So, I wouldn't be surprised if we saw a capitulation down to that level, if the bulls show weakness at $3000.
For now, we must pay close attention to what happens at a test of $3000. A hold with a breakout above the 10 EMA (in blue) on increasing volume and momentum would indicate the beginning stages of a short (possibly powerful) relief rally. A loss of the $3000 level, and especially if price defines it as resistance (by breaking below and failing to get back above) would open up the potential for powerful short opportunities.
I'm the master of the charts, the professor, the legend, the king, and I go by the name of Magic! Au revoir.
***This information is not a recommendation to buy or sell. It is to be used for educational purposes only.***
-JD-
Looking at the daily BTC chart, you can see that a gentle breakdown of the third bear flag has occurred, just as I had projected in the last analysis. You can see that the breakdown was also initiated by resistance at the 10 EMA (in blue.) As I said before, since the 10 EMA has been so resistive during this decline, when we begin to see candles close above it, that will likely indicate that some sort of a rally will ensue. If/when that happens, we will have to assess indicators such as momentum and volume to understand the upside potential. So, for now, we can assume that the 10 EMA will continue to act as resistance until it doesn't.
Furthermore, we still haven't touched the $3000 level yet, so it will be interesting to see how BTC responds when that level is contacted. Given the fact that volatility is contracting as price declines toward $3000, and given the fact that momentum is decelerating, I'm starting to think we may see a rather uneventful test of $3K. It's a level that definitely would produce a strong bounce, if price had slammed into it. But we're practically at $3000, and we are seeing very little movement. Buyers aren't entering the market yet. That's not to say that they wont. I'm just saying that they haven't engaged the market, despite how close we are getting to $3000.
If the buyers do show up, and we see a surge above the 10 EMA, on nice volume, there is a potential for BTC to rally all the way up to the 50 EMA (in orange,) which would be somewhere up in the low $4000s. On the other hand, if BTC just flops around on the $3000 level, and the buyers don't show up, this thing could really start to tank. My major downside target is in the $1100s, if $3000 is lost. So, I wouldn't be surprised if we saw a capitulation down to that level, if the bulls show weakness at $3000.
For now, we must pay close attention to what happens at a test of $3000. A hold with a breakout above the 10 EMA (in blue) on increasing volume and momentum would indicate the beginning stages of a short (possibly powerful) relief rally. A loss of the $3000 level, and especially if price defines it as resistance (by breaking below and failing to get back above) would open up the potential for powerful short opportunities.
I'm the master of the charts, the professor, the legend, the king, and I go by the name of Magic! Au revoir.
***This information is not a recommendation to buy or sell. It is to be used for educational purposes only.***
-JD-
Comment:
Friends, we should keep a close eye on the current daily candle. Two days ago, we had a red candle, with a doji yesterday, and now a green candle appears to be forming today. If today's candle closes with a tall body, in the green, that will complete the doji morning star, which is a bullish reversal candlestick pattern. So, be aware that we may see a bounce if this plays out. Keep an eye on the 10 EMA as well.
