However it was expected that something would happen as soon as contracted close to each other. We faced with a dump. The price managed to consolidate a little below Fib 0.786 and now it is resistance.
Probably it is the most important week in the BTC history as it is going to break the Triangle which was formed due to the largest crypto market crisis.
If BTC price breaks the Triangle down for a very long time we will have BTC price around $5000
If BTC price breaks the Triangle upward it will quickly recovers to the previous heights.
We think it will manage to go upward from the Triangle and there are several reasons for this:
1. XABCD pattern has just been formed
2. and confirms possibilities of growth
3. From the yesterday's dump price consolidated and is growing slowly
However there are still some threats:
1. The price is at the edge of the lower line. If it breaks down of it then the trend will be descending again.
2. Red line of ichi cloud is above green line which means there is a strong resistance
3. The price is below Fib 0.786
If the price manages to break Fib 0.786 which is around $8350 then we will have ascending movement. Combining it with the indicator means that the price will move from the lower edge to the upper edge of the channel, hence it will head to $11900. This will break the Triangle upward and bring a new wave of growth.
Our tactics is to wait for a dip and go long.
Put stop losses as high as possible. Trades are risky now.
1. Price continues its bounce and moves higher to the next level around $10 800
2. Volume goes down and bounce stops, the price follows Stoch RSI forecast and moves back to the triangle and decreases till its lower edge around $6 400
Conclusion: BTC -1.39% will obviously grow up and reach new ATH -2.28% in the long term, however in the short term the price may retest 6k level before it starts a new wave of growth
BTC hasn't not consolidated above $7300 resistance level from our previous analysis. There was a BB contraction and a huge sell volume . The price dramatically went down within several hours. The market is still very risky and unstable. However in the long term BTC will grow to new height, in the short term we should carefully consider each our move.
In a short period of time we expect a small decrease and retest of $7100 resistance level . It seems like it won't be broken and the price will move down again. It is still about time for market to recover and we should wait till the next wave of growth.