BTC just smashed through all of the support lines, this is not the best sign, but it is not the last of the support.
I have had this downsloping parallel channel plotted out for a while now, and this seems to be very accurate. As you can see, BTC was recently bouncing between the 50% heart-line and the 75% cyan line. It couldn't break above the cyan, thus a sharp impulse downwards.
- This would suggest more selling towards the .618 Fibonacci retracement zone, plotted between $6900 and $7250. This region is the box on the chart.
- The white dashed lines are support lines from 2018 and are staunch support. These are $6800, $7070 and $7400.
- I strongly believe that lower prices are coming, because the region 6900-7250 also lines up with the red heart-line of the channel.
- The Daily 377 EMA (blue) has been broken that was the support holding the recent price up for the past 3/4 weeks.
- The 2 Day 200 MA (white) and 377 EMA (blue) are coming in right around $6800 accentuating the strength of this region for being support.
- The 3 Day 200 EMA & 200 MA which are pivotal for BTC, as if these are violated it will share a very bearish scenario...
- The Weekly chart also has strong support, from the cyan 89 EMA ($7100 region). Reinforcing the confluences around that region, thus supporting my point that this area is going to be strong support at least for short and mid-term time frames.
- The Monthly chart has both the red 10 SMA & 21 EMA, these plotted at $7100 and $6900, strengthening this area for support. I do not expect these MA's to be broken on the first pass at all, keep 6900-7200 in mind as a POSSIBLE LOW...
- The Weekly Bollinger Bands have the bottom ring at $7300 area, so this region is likely not going to be broken straight away.
To conclude, $6800-7200 is very strong support and I do not think it will break for now. There are too many supporting factors in that area for me to dismiss.
Cheers for reading, hope you saw something that made sense to you :)
Share your thoughts below!
I have had this downsloping parallel channel plotted out for a while now, and this seems to be very accurate. As you can see, BTC was recently bouncing between the 50% heart-line and the 75% cyan line. It couldn't break above the cyan, thus a sharp impulse downwards.
- This would suggest more selling towards the .618 Fibonacci retracement zone, plotted between $6900 and $7250. This region is the box on the chart.
- The white dashed lines are support lines from 2018 and are staunch support. These are $6800, $7070 and $7400.
- I strongly believe that lower prices are coming, because the region 6900-7250 also lines up with the red heart-line of the channel.
- The Daily 377 EMA (blue) has been broken that was the support holding the recent price up for the past 3/4 weeks.
- The 2 Day 200 MA (white) and 377 EMA (blue) are coming in right around $6800 accentuating the strength of this region for being support.
- The 3 Day 200 EMA & 200 MA which are pivotal for BTC, as if these are violated it will share a very bearish scenario...
- The Weekly chart also has strong support, from the cyan 89 EMA ($7100 region). Reinforcing the confluences around that region, thus supporting my point that this area is going to be strong support at least for short and mid-term time frames.
- The Monthly chart has both the red 10 SMA & 21 EMA, these plotted at $7100 and $6900, strengthening this area for support. I do not expect these MA's to be broken on the first pass at all, keep 6900-7200 in mind as a POSSIBLE LOW...
- The Weekly Bollinger Bands have the bottom ring at $7300 area, so this region is likely not going to be broken straight away.
To conclude, $6800-7200 is very strong support and I do not think it will break for now. There are too many supporting factors in that area for me to dismiss.
Cheers for reading, hope you saw something that made sense to you :)
Share your thoughts below!
