Jumping off my last update, i did expected to see a break to the upside as the bulls were showings signs of strength as shown by the continuos higher low formations.
However, the stock market sell-off (which was expected anyways as the stock market is long due for a total trend reversal....crash!!!!!) quickly created panic across the crypto space hence the sell-off that weakend the bull's strength.
So where is bitcoin's price headed from here??
Weekly- This is the exact chart expectation i had some days back. At that time we just had a bounce at the $6150 support area after the flush break downwards from the $7400 resistance area.
I had originally been looking for a top at the $6800 resistance area for the weekly to establish it lower high after successfully making a third higher low formation from the $5775 bottom.
I did mention also in my last post that the bulls were a bit healthy so a break to the upside was possible seeing the continuos higher low formation, but still i expected a lower high formation on the weekly.
The flush break below after hitting the downtrendline resistrance, and a successful bounce at the $6250-$6200 support area gave us our expected higher low formaton, thanks to the stock market sell-off.
Daily- We had a nice correction but got rejected at the 0.38 fib retracement level and quickly broke below the 20 day EMA and resumed the 10 months downtrend.
However, the bulls defended and held the daily higher lows at the $6227 support area to give us our 5th consecutive higher low formation from the bottom.
The breakout below from the smaller pennant was neccessary anyways because the daily needed to loose it higher low within the smaller pennant for the weekly lower high to be confirmed.
All this does confirm our weekly has set its lower high. I do expect a correction to the $6450 resistance area, and then another flush break downwards to retest previous lows.
Daily next support at $6100 (if $6227 breaks), $6000 psychological support, and our most hold at $5800-$5775.
A break below our yearly lows will lead price straight to the $5300-$5000 support area where we should begin a final move upwards IMO.
NOTE: The recent lower high is dangerously close to the yearly psychological support zone. A break below the yearly low may lead to a prolonged sideways move below $6k before breaking out.
However, the stock market sell-off (which was expected anyways as the stock market is long due for a total trend reversal....crash!!!!!) quickly created panic across the crypto space hence the sell-off that weakend the bull's strength.
So where is bitcoin's price headed from here??
Weekly- This is the exact chart expectation i had some days back. At that time we just had a bounce at the $6150 support area after the flush break downwards from the $7400 resistance area.
I had originally been looking for a top at the $6800 resistance area for the weekly to establish it lower high after successfully making a third higher low formation from the $5775 bottom.
I did mention also in my last post that the bulls were a bit healthy so a break to the upside was possible seeing the continuos higher low formation, but still i expected a lower high formation on the weekly.
The flush break below after hitting the downtrendline resistrance, and a successful bounce at the $6250-$6200 support area gave us our expected higher low formaton, thanks to the stock market sell-off.
Daily- We had a nice correction but got rejected at the 0.38 fib retracement level and quickly broke below the 20 day EMA and resumed the 10 months downtrend.
However, the bulls defended and held the daily higher lows at the $6227 support area to give us our 5th consecutive higher low formation from the bottom.
The breakout below from the smaller pennant was neccessary anyways because the daily needed to loose it higher low within the smaller pennant for the weekly lower high to be confirmed.
All this does confirm our weekly has set its lower high. I do expect a correction to the $6450 resistance area, and then another flush break downwards to retest previous lows.
Daily next support at $6100 (if $6227 breaks), $6000 psychological support, and our most hold at $5800-$5775.
A break below our yearly lows will lead price straight to the $5300-$5000 support area where we should begin a final move upwards IMO.
NOTE: The recent lower high is dangerously close to the yearly psychological support zone. A break below the yearly low may lead to a prolonged sideways move below $6k before breaking out.
