This is the updated chart from yesterday, I added some areas where I think there is potential for a rebound.
Important resistance areas going higher: - $9200 - $9300 (unlikely to see again right now). - $8800 - $8900
Important resistance areas going lower: - $8250 - $7250 - $7350
Drop areas to watch for: - $6000 - $6200 - $5400 - $5900 - $4800 and below.
Zoom in to see things closer and zoom out to see more lines noted below. I apologize again for how busy the chart is.
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It should be noted that these potential rebound areas if BTC drops this way are likely to have very short time frames (with the exception of the one at the $7200-7300 range, which is a tough resistance area).
Also of note, I think the general target right now will be more in the $5400 - $5900 range. The zones lower than that are presented as possibilities.
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The $8885 price line was hit again almost exactly in the corner predicted. We are now moving sideways with very low volume and have been hovering around this $8800-8900 area. There is a tendency for very fast bursts to result from this kind of thing, so be aware as we tend to see the beginning of new action late Sunday and early Monday.
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There's a good chance we'll be seeing a brief retrace to the $8800 - 8900 area. Watch for movement that breaks into the area of $9250-9350, which will signify a further move up. Also watch for rejection going into either price areas, which will signify a move back down ($8200 - 8300 area re-test).
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The cyan arrow is what we're looking at, completion of a "W" pattern. You'll see I've also begun adjusting the chart for timing and potential rebounds.
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With the markets opening up this morning, Bitcoin has been dropping after a weekend of little movement.
Right now the areas to watch for are $7250-7350. Should we break this important resistance area, expect a continuation of the downwards trend. A rebound at that level is likely, but with the current trend, we are still looking to go down more and revisit $6000-6200 area and below perhaps by later in the the week. Keep an eye on the important lines. . .
Also see my previous chart, the squared-expected area for pricing is still highly relevant to the current moves of Bitcoin:
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I got a few questions about the rebound lines I drew. They should be used as an area indicator and the price lines used for shorts if you are doing those. So for instance I have a rebound (down and up line) between $7350 - $8250. In between those lines there is $7850 & $7575 (see the right side of the chart for exact numbers). So those are the important lines I've indicated between that you could consider using or comparing (along with the hit areas themselves).
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So after getting the general descent pattern down, but not perfect timing, Bitcoin is now aligning closer to the chart as it descends. Watch for the $6950 area support and see if we get a candle close there on the 4hr. We've already had substantial break through in an earlier wick.
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The $6600 area was hit, but there's been a rebound in this zone close up to (but still under) the resistance area of $7200. Note that something similar occurred between $7300 and $8200 zone? The price sidelined awhile more than once at varying levels between there but down we continued.
I expect another push down very soon that will break through the $6600-6700 area and Bitcoin's descent will continue. No signs this drop is over yet. Watch for the reaction around $6450 when the above is breached.
the 5th wave down is rarely that steep or violent. It is more drawn out and designed to exhaust hodlers, but not without injecting hope with periodic bounces like we got off of 6k and 7.3k.... I think we go up to 13k before starting long descent right when all the fomo starts up the carpet will be pulled out from under bull feet. I will continue to play every bounce though so not too worried. Your prediction screams short btc but That is too risky imo at these prices unless you are just daytrading.
SpectreX
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@BullWick, I disagree. I say no chance 13k right now. There has been a failure to break past the $9200 - 9300 too many times. Down we go.
BullWick
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@SpectreX, Yes bear count down off of 92-9600 (completion of ABC) is valid. the bull count now has us starting big wave 3 up with 6kto11800 being wave 1.
I've been posting about how futures markets entice whales to artificially pump and dump BTC between contracts and called a big pump at around 7k which ended at 12k when contracts expired and I called big sell off based on just futures alone... those expired on the 18th (our recent 7.3k low). Next ones expire in a few weeks but direction whales seem to want to go is up to dbl their money again. Full Idea is here...
SpectreX
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@BullWick, I can see a pump after another drop, but for now I still hold the opinion that we drop to around $6000 and less before we go substantially up again. I'm sure we'll see by the end of the week which direction, but I call down for right now. Still no signs otherwise in my opinion. Volume has even turned abysmal.