BTC 4hr - Likely Downward ST Movement + What Might Be Next
Not a pro trader, not advice.
Looking at BTC on the 4hr bitfinex chart, I think we’ll likely see some downward movement in the short term. Since August 21st, we’ve seen 5 failed attempts to breakthrough the range in the orange rectangle. Additionally, the 200 SMA is converging on this area creating addition resistance in this area.
Should we break downward, the first possible support level could be the 50 SMA, around $6500. From there, we could potentially see yet another retest of the $6800ish area or further downward movement with the next possible stops being at the $6300-$6450 range where we’ve seen a lot of volume and a potential second stop around the $6000 area where we’ve experienced our most recent lowest low.
Looking at BTC on the 4hr bitfinex chart, I think we’ll likely see some downward movement in the short term. Since August 21st, we’ve seen 5 failed attempts to breakthrough the range in the orange rectangle. Additionally, the 200 SMA is converging on this area creating addition resistance in this area.
Should we break downward, the first possible support level could be the 50 SMA, around $6500. From there, we could potentially see yet another retest of the $6800ish area or further downward movement with the next possible stops being at the $6300-$6450 range where we’ve seen a lot of volume and a potential second stop around the $6000 area where we’ve experienced our most recent lowest low.
Comment:
Well, BTC has moved to the top of the range in the orange box to meet the 200 SMA and seems to be stuck there. Let's see if we can get some confirmation above the top of the orange range and above the 200 SMA. If so, i think that's a good sign and BTC would be poised to test the top of the downward channel (dotted red line). If don't get confirmation above those, I think we'll be headed back down to the previous levels, then the purple line level, then the blue line level.
