BITSTAMP:BTCUSD   Bitcoin / U.S. Dollar
BTCUSD Weekly TF

As BTCUSD has broken a key level on RSI ( Relative Strength Index ) 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 Descending Broadening Wedge which could see a rally toward the former Support (now Resistance) at $46,000 - $47,000. If Bearish Volume 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 RSI ( Relative Strength Index ) as it has now crossed below the 50.00 level and trending Bearish , 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 ( Technical Analysis ) 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.

"DISCLAIMER: NO ADVICE. The information presented here is general in nature and is for education purposes only. Nothing should be considered to be advice. You should consult with an appropriate professional for specific advice tailored to your situation."

Comments

the big correction is long due
if it does not stand 30k we will see much lower levels
I am shorting it since 50k and expecting 12-16k this summer
+1 Reply
All the bulls are charting crap ignoring the data such as volume, momentum, RSI. RSI weekly below 50 is a death sentence. Let's be honest. Seriously. If the chart looks good, I'm a bull, I can go long. If it looks like it's going down then you just short. I don't get the FUD, people need to learn to short.
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