So after yesterdays drop , lets take a look at where we are now.
Price currently is resting above 6400 at the Fib 61% level.
If we look at the 4hr charts, fib 61% looks rather weak in my opinion and I don't think it will hold.
Therefore we will most likely see a retest of 6000-5800. This will either give us a treble-bottom signal (after all, why have two bottoms when you can have three? ;)) or at very least I expect some bounce (three bottoms with bounce!!), and then if that rally fails, we'll be heading lower again.
5k offers additional support as its the lower channel as well as fib level AND previous , so personally, this would be my favourite.
If we do get to 5000, then its going to be a great opportunity to buy (including some super cheap alts).
I'd love to hear your comments. Remember to follow me if you like my analysis.
Bye for now!
I can see that there are quite a lot of people on TradingView calling the bottom of this recent downward move. But are we really?
Let's take a look at the evidence and see what the mystical candlesticks are telling us (Wooo!)
1. Price found support at 6100 (fib 78%) and a battle between bulls and bears has been going on, with price effectively moving in a sideways range.
2. An inverse hammer signal formed. Be aware that an inverse hammer tells us to pay close attention - price MIGHT reverse, but we need to watch the surrounding price action...
3. ...we have multiple consecutive inside bars. Currently 2 and possibly 3 if today's candle closes in its current range. Two things to know about Inside bars. They are a continuation signal (of the current move) and the more inside bars you get, the more explosive the move is likely to be.
4. The Stoch RSI is showing oversold and is beginning to rise. This might bring price a little higher in the short term. For this reason I've drawn the fib 38% retracement level in red at 6637.
Price is at an important level, but at the moment it looks like more downside is the most likely outcome.
Watch 6000-5800 carefully for further clues of where price could be heading next.