BITFINEX:BTCUSD   Bitcoin / U.S. Dollar

First, we see this: Original setup!

Bitcoin price rises, corrects and finds the demand zone i.e 6000.

All we need to know now how did this form. When you put a Fib level on, you as a technical person say that the price corrects back to the levels where it should have i.e eliminating overall 65%.

However, investors use simple math i.e. 20K, remove 70%, what are you left with? Of course 6000.

We zoom out and observe this again,

Every time we touched the 6K , we get a quick buying pressure on the same day. Even the Jun 24 Doji was rejected a few days, BTC closed below 6K but it could not close below the previous low. Thus, the next day was a buy. Since then BTC came just close to 6K but could not touch that.

We started seeing bullish divergences on many volume based indicators.

Therefore, the simple question is, if BTC has bottomed, it has to break the Lower High trend. Therefore, what we will end-up with is a few months consolidation and one or two back tests. That will be the confirmation of the bottom. Otherwise, we continue developing Lower Highs and break the support. They say, when you touch a level so many times, it is weak and will be broken.

Trade closed: target reached: BTC breaks below after touching the support so many times.
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