Today looks to be the fourth touch of a descending channel trend. The first touch at the bottom of the channel was at the 0.382 Fibonacci retracement around 47.5K. Then it retraced back to the around 55K then back to 45K. Now today we have once again retraced back up to the top of the channel around 51.5K (near the 0236 Fibonacci retracement).
That by my count is 4 touches in this channel. Although there is a possibility of a breakout here, I still think there is a good chance it will trend down, near the .5 or .618 Fibonacci retracement levels near 44K or 40K respectively over the next few days for a fifth touch down. Hence the number I am looking for is around 51K short term to invalidate this theory, otherwise I am keeping an eye out for further drops
The good news is this trend forms a bull flag, so hopefully afterward will return us to higher highs.
That by my count is 4 touches in this channel. Although there is a possibility of a breakout here, I still think there is a good chance it will trend down, near the .5 or .618 Fibonacci retracement levels near 44K or 40K respectively over the next few days for a fifth touch down. Hence the number I am looking for is around 51K short term to invalidate this theory, otherwise I am keeping an eye out for further drops
The good news is this trend forms a bull flag, so hopefully afterward will return us to higher highs.