Bitcoin is moving below EMA100 on bearish momentum for the first time since May.
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When Bitcoin moved and closed below EMA100 in May, we had the strongest correction of the year.
Now, Bitcoin going below EMA100 can signal that something similar can show up.
We have bearish indicators. The MACD is below zero and trending down strong. While the RSI is at 39 trending/aiming lower.
Note: The trading volume is still low and candle closure is needed for confirmation, meaning that prices can bounce but the bearish bias is now becoming really strong.
How far low can Bitcoin go?
For the answer we go back to the three (3) scenarios we looked at before.
1) Taking out 1 support level and then bounce. That would be around $50,000.
2) A stronger drop before the bounce. That would be around $44,000.
3) Long-wick fast/sudden drop that most people won't expect. This can take us to $30,000.
What's your take?
We are now in-between 2-3, a strong drop with a long lower wick, sending prices low before a long-term recovery!
Let's see how it goes.
Thank you for reading.
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This is likely not over... We will need a full update to see what might happen next.
But let's have a look at Bitcoin and our Altcoins (altsbtc).
Bitcoin Daily
We have over 11 hours before the daily candle closes. How this candle closes will determine the short-term price action.
Closing daily below EMA300/MA200, which are the grey and black lines on the chart, can send Bitcoin straight down. Closing above can lead to a small bounce but there is still likely to be more.
The weekly timeframe doesn't look good. We will wait for the weekly close to share the analysis on this one.
The monthly timeframe isn't looking good either. I can do this one next.
Altcoins The Altcoins will trade, mainly ALTSBTC minus the top ones, will recover fast and strong.
When Bitcoin drops this strong, they have an initial reaction where they follow but they recover within a few days. On our pairs, this is an important to buy-up, rebuy and reload for long-term gains.
As usual, leave a comment if you have any questions.
Your continued support is highly appreciated. Remember to hit LIKE now!
@AlanSantana, I told you many times in the past 3 weeks it will go down between 42-44k you laughed at me and made a Joke. Now who is laughing at you. Also 41k to 39K is the bottom It cant go back to below this level again. we will re test 41 and 40 and 42 and maybe (maybe) 39 before breaking ATH in the upcoming months.
Yes it could take 8 week to start jumping, we are looking at April to summer.
Fbsss
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@ecod3r, bitcoin will go down between 18-10k due to USD tappering and combination with new covid called Omicron. You can laugh at me