As BTCUSD has broken a key level on ( ) I thought I would highlight a few scenarios of what could come next.
#1: A bounce off the "Golden Pocket" 0.5 - 0.618 Fib Retracement Level has currently held price above $30,000. If it can hold and regroup price could trend within the highlighted which could see a rally toward the former Support (now Resistance) at $46,000 - $47,000. If continues and positions are dumped, then there is a possibility of dropping lower.
#2: "Fix that Wick" With the Bears clearly in control over the last couple of weeks price fell rapidly to $30,000 with the initial buyback strong off the “Golden Pocket” a huge wick has formed over the last couple of days. A key indicator to keep an eye on currently is ( ) as it has now crossed below the 50.00 level and trending , this hasn’t happened since the “Covid19 Dump” on the 24/02/2020. If we are to continue form a retest of $30,000 is likely.
#3: Cliff to the 0.618 Fib Retracement and previous Resistance (now Support) at $20,000. If $30,000 fails then all bets are off, looking for the Fib Retracement 0.618 @27,000 as the last line of defence for BTCUSD .
Currently it is anyone’s guess as the retail investors and traders cannot sway the BTC market. TA ( ) only provides us with key levels to target but is purely based on price history. I’m concerned that Institutional Money is now sitting in the Red and they are probably beginning to average out of there positions. This won’t be public knowledge until reporting season at EOFY, and price could fall rapidly if leaked.
Also to consider is the previous “China Ban” in 2017 caused the market to swing + %30 before support was regained.
Time will tell. Manage your Risk and Position Size and you will be fine.
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