BTC will follow the parallel channel down and test the major support level of $5756 with the 100 EMA helping act as support. If we successfully bounce of this level we will test the 0.618 fib level ($8072.1), which has become a major resistance zone.
As the $5756 support area has been tested over 4 times it’s becoming weak and won’t hold much longer. Once this breaks we will drop sharply to the 0.786 fib support area around $4848, labelled as the bottom ‘bounce’ zone. This zone has confluence with the 150 EMA and the $4243 level which has had some nice violent reactions off it previously. Lacking any volume or horizontal levels to provide support the drop from $5756 will be a swift 14% drop.
This is where I see us bouncing back hard, returning to eventually fight that major resistance zone. Not only is it the golden pocket between 0.618 and 0.65 fibs but we have considerable confluence of the Tenkan Sen , EMA 20, EMA 50 and the POC for volume.
That will be BTC’s biggest test, and if we break it, that area should then become major support. Once established as support I believe we will range nicely between it and the 0.5 fib at $10336. This area also has the cloud providing resistance.
This would provide prime conditions for an “alt season” whilst BTC becomes somewhat stable and ranges, until BTC is ready and breaks the cloud and the 0.5 fib.
As the $5756 support area has been tested over 4 times it’s becoming weak and won’t hold much longer. Once this breaks we will drop sharply to the 0.786 fib support area around $4848, labelled as the bottom ‘bounce’ zone. This zone has confluence with the 150 EMA and the $4243 level which has had some nice violent reactions off it previously. Lacking any volume or horizontal levels to provide support the drop from $5756 will be a swift 14% drop.
This is where I see us bouncing back hard, returning to eventually fight that major resistance zone. Not only is it the golden pocket between 0.618 and 0.65 fibs but we have considerable confluence of the Tenkan Sen , EMA 20, EMA 50 and the POC for volume.
That will be BTC’s biggest test, and if we break it, that area should then become major support. Once established as support I believe we will range nicely between it and the 0.5 fib at $10336. This area also has the cloud providing resistance.
This would provide prime conditions for an “alt season” whilst BTC becomes somewhat stable and ranges, until BTC is ready and breaks the cloud and the 0.5 fib.