It is that time where price is at a do or die level. Not a do or die level in the sense will Bitcoin fail completely or not, but rather will it hold a very important support level that was the level that was responsible for being support before the major up move in bitcoin that started in November. At the moment it's clear price will continue correcting/consolidating for the time being. even if price stops right now at a standstill and doesn't go lower, it'll be a while before the upside begins properly.
Bitcoin is now trading at a horizontal support zone between 6470 and 5780. This zone is indeed wide, but when finding a bottoming of a structure (Especially long term) then it's required to use a broad level to cover all hits on support, therefore covering all possibilities of where price can bounce from very highest to very lowest. As it stands now, price is halfway into the horizontal support zone and it still having a bearish bias. Price may well stop in this zone eventually then the upside can ensue.
If this level DOES happen to fail, then there is fortunately a contingency level that price could fall back on before a confirmed failure. There is the side-wards support line with a low of around 5510 that could hold up and allow upside to ensue. If price hits the side-wards support line however, it'd be good to see a STRONG rejection candle such as a pinbar or a hammer signal showing that the level was not simply bounced off of, but rather bounced at aggressively and totally rejected. If this happens there's a buy opportunity right there.
Despite the side-wards line being a fall back, there is an inherent risk that price could come up to the horizontal support zone as a new resistance and just get trapped for even more downside, so preferably I'd like to see a bounce within the support zone outlined, but at least we have a fall back if things continue to go down as they have.
I will continue to update this analysis if it receives enough attention.
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Bitcoin is now trading at a horizontal support zone between 6470 and 5780. This zone is indeed wide, but when finding a bottoming of a structure (Especially long term) then it's required to use a broad level to cover all hits on support, therefore covering all possibilities of where price can bounce from very highest to very lowest. As it stands now, price is halfway into the horizontal support zone and it still having a bearish bias. Price may well stop in this zone eventually then the upside can ensue.
If this level DOES happen to fail, then there is fortunately a contingency level that price could fall back on before a confirmed failure. There is the side-wards support line with a low of around 5510 that could hold up and allow upside to ensue. If price hits the side-wards support line however, it'd be good to see a STRONG rejection candle such as a pinbar or a hammer signal showing that the level was not simply bounced off of, but rather bounced at aggressively and totally rejected. If this happens there's a buy opportunity right there.
Despite the side-wards line being a fall back, there is an inherent risk that price could come up to the horizontal support zone as a new resistance and just get trapped for even more downside, so preferably I'd like to see a bounce within the support zone outlined, but at least we have a fall back if things continue to go down as they have.
I will continue to update this analysis if it receives enough attention.
Please leave a LIKE. I'd really appreciate it.
Thank you for your support.
Only way this will change if there is a steady and sustained amount of bulls who continuously put pressure on the bear market, At this time the bulls don’t seem especially interested and thus downside is allowed to take over.
Continuous downside doesn’t really show investor confidence (Even in the slightest) which means investor volume in this market is basically non existent.
I am expecting price to stay in the zone, or hot the side-wards support but this is just a hope, Right now there’s not much indicating that it actually will do this
I will continue to update this analysis had it receive sufficient attention.
Please leave a LIKE. I’d really appreciate it,