Quick update for BTC. We had a bounce from the 6400ish region which to be honest I didn't expect and don't like. I was sure that any dump would take bitcoin lower, down to 6200 to 6000 region with a possible wick below 6000. I got in on the reversal at 6800 and sold at 7200ish.
Had we gone down to 6000 then a much stronger reversal would have taken place, something similar to late October PA. What we are seeing now on lower time frames is a channel developing, not even a bull flag. This is worrisome. In addition the PA is following a traditional pattern of testing the 20 EMA before being rejected. This has happened several times since October and each and every time price has fallen soon afterwards. RSI on the daily is poitning south and at 45. Again the pattern is strikingly similar to what we have seen several times already.
Is there anything bullish about this chart? No. We have been making a series of lower lows and lower highs. Everything points to BTC testing the bottom of the channel again in the coming days, this time going down to 6000. The only reversal point I see at this stage is the 6900 to 7000 level where price could bounce and reverse back up. This is a key fib level and has already acted as support in the past so you need to be aware of this. If we get a hammer candle close on a 4hour at this level it would be a bullish short term scenario.
What I wrote in my previous analysis is still valid: any break of lower channel boundry and we are heading into the low 5000's.
Good luck and always DYOR!
Had we gone down to 6000 then a much stronger reversal would have taken place, something similar to late October PA. What we are seeing now on lower time frames is a channel developing, not even a bull flag. This is worrisome. In addition the PA is following a traditional pattern of testing the 20 EMA before being rejected. This has happened several times since October and each and every time price has fallen soon afterwards. RSI on the daily is poitning south and at 45. Again the pattern is strikingly similar to what we have seen several times already.
Is there anything bullish about this chart? No. We have been making a series of lower lows and lower highs. Everything points to BTC testing the bottom of the channel again in the coming days, this time going down to 6000. The only reversal point I see at this stage is the 6900 to 7000 level where price could bounce and reverse back up. This is a key fib level and has already acted as support in the past so you need to be aware of this. If we get a hammer candle close on a 4hour at this level it would be a bullish short term scenario.
What I wrote in my previous analysis is still valid: any break of lower channel boundry and we are heading into the low 5000's.
Good luck and always DYOR!