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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Thank you for your support.
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Bears and bulls are in conflict in the support zone but ultimately price is still being smashed by bears. Price consistently gets bullish minor correction waves which then allow bears to push through with another impulse wave downwards.
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.
@TomProTrader. Thank you for your detailed, non bias, TA's. I do not trade BTC, only ADA/USDT pairings as an accumulator. In the past 30 days, with the help of your BTC TA's (which correlate with the movement of alts) I have gone from 15000 ADA to 20000 ADA as of yesterday. Thank you for your proper use of grammar as well. You are an invaluable asset to the community!
Past trading price action doesn't define what the outcome will bring to the future.
whalecheetah
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question i keep wondering is what people are genuinely feeling with the buy/sell orders. we are at the major support and if this goes hard and we go one rally under that's 3200-3700. stay at home miners are now unprofitable. hashpower will drop. bcash will be in a world of trouble in this regard unless bitmain rescues them. in the 2014 bear market we did go to the 3200 level equivalent but we also had mt gox blow up which was 70% of trading volume and marcus and wiley manipulate the upside. in 2013's parabolic move. where is the catalyst for another leg down? i don't discount a 5300-5700 push down right now but just don't see a current catalyst to get under that even if there is a historical technical argument.
EduardZimmermann
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@TomProTrader i'm no pro (only my account is) so in the past i've created support zones by using wicks and open/close price of the current/following candle. I see your support zone looking different than mine therefore i would like to know your criteria/s to form such a zone. Thanks in advance for an enlightenment.