BTC - levels to watch for a potential reversal
Hello guys,
The market is heartbreaking for bulls these days, but not for those who manage their risk properly and hedge their positions. Or those who expected the reversal to the downside.
What I'm currently looking at is for an exhaustion of the selling pressure that will lead at least to a short-term retrace and open the door for long position opportunities followed by potential shorts if we see another rejection.
It is clear that BTCUSDT broke the bullish structure and is most definitely in a bear market if we follow the traditional finance rules for declaring a bear market. In general a correction that is bigger than 20% from the top is considered an end to a bull cycle. Of course, we have seen way way bigger pullbacks in crypto, but the difference here is that BTC almost lost half of its value since peaking at $65,000 in April. It also lost the 21-day EMA on the Weekly timeframe, which is a strong indicator for a reversal. The uptrend corridor was also broken.
So, now I'm interested in the $33k -$30k zone and $32,000 in particular as it was the January correction bottom and the lowest point we reached during this week's drop. I think the zone will be tested once more and will present a good buying opportunity.
I have also marked with a green arrow the project path all the way up to $59,000 - this is the positive scenario where the price respects then breaches the three major resistances while also putting pressure to the lower boundary of the uptrend corridor (diagonal resistance).
The resistance levels are more or less in line with the Fibonacci levels.
Cheers,
The market is heartbreaking for bulls these days, but not for those who manage their risk properly and hedge their positions. Or those who expected the reversal to the downside.
What I'm currently looking at is for an exhaustion of the selling pressure that will lead at least to a short-term retrace and open the door for long position opportunities followed by potential shorts if we see another rejection.
It is clear that BTCUSDT broke the bullish structure and is most definitely in a bear market if we follow the traditional finance rules for declaring a bear market. In general a correction that is bigger than 20% from the top is considered an end to a bull cycle. Of course, we have seen way way bigger pullbacks in crypto, but the difference here is that BTC almost lost half of its value since peaking at $65,000 in April. It also lost the 21-day EMA on the Weekly timeframe, which is a strong indicator for a reversal. The uptrend corridor was also broken.
So, now I'm interested in the $33k -$30k zone and $32,000 in particular as it was the January correction bottom and the lowest point we reached during this week's drop. I think the zone will be tested once more and will present a good buying opportunity.
I have also marked with a green arrow the project path all the way up to $59,000 - this is the positive scenario where the price respects then breaches the three major resistances while also putting pressure to the lower boundary of the uptrend corridor (diagonal resistance).
The resistance levels are more or less in line with the Fibonacci levels.
Cheers,
Comment:
Alright guys, so for now we are rebounding perfectly from the same zone, now solid support. I opened some small longs let's see how it goies