-When Bitcoin started its retracement it tested the 100EMA, but the sell pressure was too strong and this level could not hold.
-It then moved down to test the 200EMA which looked like it was going to hold BUT the previous lows had not been tested. There would be a number of stop losses in place here so it is a logical place for the price to move to.
-The price then swept the lows, which was not unexpected for us, then moved up to test the 100EMA.
-So far, it looks like the selling pressure it too strong for the 100EMA to hold HOWEVER there is still a chance for price to bounce from here.
-Price is currently sitting on a key area above the 200EMA, and is sitting on a diagonal support (good confluence)
-If price flips the 100EMA to support that is a good sign of strength
-Because the lows have already been swept, the price should start moving to the previous high
-The 100EMA has been tested a number of times and is not holding.
-If breaks the diagonal , price will continue to fall
-The previous lows have been swept HOWEVER there is an area of high demand that is untouched. When the lows were swept the buy pressure was strong enough to quickly push the price back up, however as price moves down again this buying pressure will be reduced.
-This leaves us with a key that is untouched and has a large amount of liquidity.
-If the 200EMA does not hold, fully expect the price to retest the .
Watch the candles, pick your side.
Your risk, your reward. This is not financial advice.