The price moved in consolidation and broke the bottom line of the pattern. It confirmed the downward direction. It is another bearish signal from the market.
Now the price is trying to pass through 8000.00 support level. If this attempt is successful, we should be ready to see the falling to 7500.00 and 7000.00 levels. The main target for sellers is the same - it is 6000.00 support zone which acted as the solid bottom in the past.
MACD lines and histogram support the downward movement. The same goes about DMI, which confirms the strength of sellers too. RSI is in the oversold zone and probably we will see a short term pullback. But it looks like we should not expect the trend reversal. The market wants to be bearish. Sellers are more active and they are stronger than buyers. As for buyers, where are they?
For better understanding the whole picture, please read my previous post about Bitcoin based on the daily timeframe. You can find it in the related ideas.
Look at the monthly chart. 7427 (Coinbase) is next support with the monthly 12 EMA just above it.
If and when that fails we will likely begin monthly consolidation
DLavrov
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@Prometheus76, I thought about the monthly chart too. I saw some interesting levels and line. I will make a post about it. Thanks for the advice and feedback!
Husain_Arkghazi
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well 7500-7800 is strong support zone and bulls are perfectly protecting this level, a drop is most likely towards 6000 is possible, but as always prices wont go down in a straight line, maybe a spike could occur from here towards 9200 level to shake weak hands and than could continue towards new lows
DLavrov
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@Husain_Zabir, thanks a lot for sharing your opinion and charts! I should say that I don't like bulls action. They show nothing. I saw something like this in 2018, when the price dropped and the market was not reversed quickly. The same goes about this year. I think we will see at least the attempt to break 7000.00 and move to the bottom. Let's see)
Husain_Arkghazi
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@DLavrov, nice to hear from you, looks like history is exactly repeating itself and more quickly
lambdabr
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Why 6000? The main resistance for me looks like 5700 or down.
DLavrov
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@lambdabr, because it is solid round number level which was confirmed many times in the past.
finsIe
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Thanks for sharing buddy!
More down-ward movement VERY VERY likely, but I would expect a bigger pull-back / correction at this point to the 9k zone first. However, before that I am even looking at even more short-term price action to see whether or not this pull-back that I am forecasting has actually already started or will we have a super small & quick dump and bounce first. For now, I do not expect lower than 7.4k-7.5k.
DLavrov
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@apdodog, 9000 looks interesting zone for correction, reversal and further falling. Thanks for sharing your opinion and the chart!
stell_s1
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I am also on the short side but I have closed my shorts for now. I want to see at least a minimum retrace to the near 8200+ zone before even considering next short.
Of course there is scenario to keep falling like a rock.
If and when that fails we will likely begin monthly consolidation