As you can see, BTCUSD is once again challenging the long term support curve dating back to early 2017. This curve is responsible for the recent rejection as the price plummeting down from the all time high a few months ago.
Can we expect the same again? Most likely.
There are a few reasons why I stand by this opinion.
1) This support curve has had several extremely large rejections in the past. It has proven that there is quite a bit of strength behind it.
2) The price already appears to display signs of a bullish candle pattern - with only wicks falling below the curve.
3) It is extremely over sold at the moment, which with some support typically suggests a price bounce in the near future.
4) The green candle following the red candle with a wick rejection suggests bullish behavior in the near future.
Can we expect the same again? Most likely.
There are a few reasons why I stand by this opinion.
1) This support curve has had several extremely large rejections in the past. It has proven that there is quite a bit of strength behind it.
2) The price already appears to display signs of a bullish candle pattern - with only wicks falling below the curve.
3) It is extremely over sold at the moment, which with some support typically suggests a price bounce in the near future.
4) The green candle following the red candle with a wick rejection suggests bullish behavior in the near future.
Comment:
1 hour chart has already shown a bounce back.