If you follow me on Twitter, you may have seen my warning this morning that Bitcoin may have topped out. Since then, price has fallen even deeper into negative territory. We can see that BTC was not able to close above the 7402 resistance level, and the sell side pressure is starting to pick up. This is the daily chart, but on the smaller time-frames the sell signals are increasing as well.
If 7400 does end up being the top, we could easily see BTC retrace to the 6000 range. However, the most critical retracement levels remain below the 6000 handle. So, I think there is a high probability that we could retrace back below 6000, to test those critical retracements, if we are entering a correction from 7400.
On the other hand, if BTC doesn't fall lower, and it just consolidates here, that would change the outlook. Until then, we have a clearly negative reaction at the first major pivot high that BTC has reached during this rally. For now, we need to see how this current daily candle closes. Remember that the day isn't over. If BTC turns around, and closes this daily candle above the 7400 level, that would be very bullish. However, as of right now, that isn't the case. So, if this candle closes red and below the 7400 level, it would signal more downside in the coming days, and possibly the beginning of a correction.
I'm The Master of The Charts, The Professor, The Legend, The King, and I go by the name of Magic! Au revoir.
***This information is not a recommendation to buy or sell. It is to be used for educational purposes only.***
-JD-
If 7400 does end up being the top, we could easily see BTC retrace to the 6000 range. However, the most critical retracement levels remain below the 6000 handle. So, I think there is a high probability that we could retrace back below 6000, to test those critical retracements, if we are entering a correction from 7400.
On the other hand, if BTC doesn't fall lower, and it just consolidates here, that would change the outlook. Until then, we have a clearly negative reaction at the first major pivot high that BTC has reached during this rally. For now, we need to see how this current daily candle closes. Remember that the day isn't over. If BTC turns around, and closes this daily candle above the 7400 level, that would be very bullish. However, as of right now, that isn't the case. So, if this candle closes red and below the 7400 level, it would signal more downside in the coming days, and possibly the beginning of a correction.
I'm The Master of The Charts, The Professor, The Legend, The King, and I go by the name of Magic! Au revoir.
***This information is not a recommendation to buy or sell. It is to be used for educational purposes only.***
-JD-