as much as id like to think this bitcoin dump is over i still think we have further to fall.
we are basically at wave 4 and i expect a small climb now as we have found support in the $6700 region. after breaking the short term trend line we now have resistance around the $7100 (orange dotted line on diagram) and for the market to feel confident in buying the bulls really need to make an effort to take $7100 and remain above it.
saying that i think with the market in the position it is a lot of buyers aren't seeing the green lights for it yet and im feeling we will fail this test.
if failure happens then a drop to the next trend line (shown in pink on diagram) at $6500 (yellow dotted line on diagram) is the most likely scenario creating another double bottom for bitcoin, this could be the area buyers are waiting on.
a drop into the green box wouldn't mean the worst however failing to hold $6200 (Z on diagram) could mean we drop below the $6k (blue dotted line on diagram) mark then its anyone's guess to where the knife lands; $5k, $3500, lower? - all are possible.
playing with caution right now, ovs plenty of opportunity but also as much risk. tight stop loss at any of these regions if you move in.
peace.
we are basically at wave 4 and i expect a small climb now as we have found support in the $6700 region. after breaking the short term trend line we now have resistance around the $7100 (orange dotted line on diagram) and for the market to feel confident in buying the bulls really need to make an effort to take $7100 and remain above it.
saying that i think with the market in the position it is a lot of buyers aren't seeing the green lights for it yet and im feeling we will fail this test.
if failure happens then a drop to the next trend line (shown in pink on diagram) at $6500 (yellow dotted line on diagram) is the most likely scenario creating another double bottom for bitcoin, this could be the area buyers are waiting on.
a drop into the green box wouldn't mean the worst however failing to hold $6200 (Z on diagram) could mean we drop below the $6k (blue dotted line on diagram) mark then its anyone's guess to where the knife lands; $5k, $3500, lower? - all are possible.
playing with caution right now, ovs plenty of opportunity but also as much risk. tight stop loss at any of these regions if you move in.
peace.