Looking at the yellow converging trend lines, we might be reaching a crunch point soon.
Bitcoin looks set to have another go at breaking the declining trend line before long, but even if it breaks upwards there can still be the possibility of a deeper decline as marked by the red ABC.
Trading volume is still strong, and if we see a spike as strong as we did at the 6k bottom to push out of the current downward trend, then perhaps Bitcoin will have enough momentum to take the green impulse path to challenge the all time high.
I will be looking closely at the volume of any upward moves
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almost certainly invalidated, trend line has been broken - down we go?
Thanks...have you ever seen death cross not play out? I can see a death cross happening...do u think that will turn the trend around? thanks
MonkeyMagic
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@AsmaHassan, nice spot. It is close but not crossed. Yes of course it would suggest a lower low. It is a lagged calculation though and last days impulse will start to have an effect and perhaps prevent the cross. Something to keep an eye on.
Daily MACD seems to be curling up suggesting the opposite....
Asma7assan
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hello there, now that we broke above the 8,300 target forming a bull flag, where doses that take us? what are the support levels and resistance on the way upwards? also most importantly, do you still think we can head downwards towards 6-7k? thanks
MonkeyMagic
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@AsmaHassan, I think in the short term we will see resistance at 9k-9.5k (due to both horizontal and diagonal resistance lines) and unless there is a significant increase in volume at that stage it will pull back to around 8k before moving up.
There will of course be minor corrections on any impulsive move up towards 9.5k.
As I mentioned, in the medium term it is possible for Bitcoin to turn around somewhere between 12K-15k and head back down to 4k but I think that is unlikely. I will need to see the developing shape of the current upward move before I am ready to change my mind on that.