Bitcoin BTC Correction Potential Scenario
As we charted in a previous analysis, we have seen a correction from 42,700k almost perfectly. From here it is going to be important to see where BTC finds true support and see where it will retest broken support. Here is my previous analysis for more context;
As we were able to predict the correction from past Price Action we will try to do the same here. Both the structure and channel BTC is trading in are almost identical, the only difference is the supports this time around. If we take this into consideration we can potentially assume the small downtrend channel it may trade in before resuming back up.
These big channel lines you see in the chart are dynamic levels that stretch back to 2015 (6 years) and have been incredibly consistent in predicted strong supports and resistances. This was another reason I was able to predict the 52,700 resistance. Here is the chart zoomed out so you can see for yourself.
The reason this correction was so strong and fast was because BTC was at the last main resistance (indicated by the Red line) before it was free to 70k. This obviously is a very important level and is why we have seen such a strong reaction.
One of the main things to focus on when predicting future price movement is the time of the month we are in. In this case, it is the 7th of September. The last big correction happened on April 17th. So clearly we took a big move early. The key thing to note here is for the last 5 months, even if the entire month was Red once we approached the end of the month things started to pick up to close the month green. Things could be very similar here where we could see a correction the rest of this month, only for it to blast off just before the monthly close.
From here I am expecting a retest of broken support at 48.5k. This will be the crucial point for this analysis. If we see a rejection there, this scenario becomes very likely.
Resistance ~48,500k , 50,000k
Support ~42,800k , 38,800k
As we were able to predict the correction from past Price Action we will try to do the same here. Both the structure and channel BTC is trading in are almost identical, the only difference is the supports this time around. If we take this into consideration we can potentially assume the small downtrend channel it may trade in before resuming back up.
These big channel lines you see in the chart are dynamic levels that stretch back to 2015 (6 years) and have been incredibly consistent in predicted strong supports and resistances. This was another reason I was able to predict the 52,700 resistance. Here is the chart zoomed out so you can see for yourself.
The reason this correction was so strong and fast was because BTC was at the last main resistance (indicated by the Red line) before it was free to 70k. This obviously is a very important level and is why we have seen such a strong reaction.
One of the main things to focus on when predicting future price movement is the time of the month we are in. In this case, it is the 7th of September. The last big correction happened on April 17th. So clearly we took a big move early. The key thing to note here is for the last 5 months, even if the entire month was Red once we approached the end of the month things started to pick up to close the month green. Things could be very similar here where we could see a correction the rest of this month, only for it to blast off just before the monthly close.
From here I am expecting a retest of broken support at 48.5k. This will be the crucial point for this analysis. If we see a rejection there, this scenario becomes very likely.
Resistance ~48,500k , 50,000k
Support ~42,800k , 38,800k
Comment:
I just realized I said 42,700k at the beginning of the analysis when I meant 52,700k, this is obvious but just wanted to make it clear.