In my previous post i reitrated the fact that Bitcoins bullish bounce from the lower boundary of the rising wedge may likely take us to $10k, but as usual, the market movers and whales were smarter.
While every other person and their grandmother were expecting to see a 9500-10000 level before reversal, the market movers and whales exited at 9000-9100 turning this area to a huge supply zone hence the sharp pull back on three occassions that price got near this level.
The final break out of the rising wedge and below the 20 day MA, shows that the correction has started, and the bears are in full control right now.
The recent bounce from the 0.38 fib level is nothing but a breather for the next leg downward IMO judging from the confluence of bearish factors on the higher time frame.
I do expect the correction to lead us straight to the 20 day MA (thin yellow line) at 8100, where i expect to see a rejection to contine the move downwards,
Below us is a confluence of support, the 55 day EMA (thin red line), the 50 day MA (thin purple line) and the horizontal support, all converging at the 6900-6800 level,
The 0.50 fib retracement level and the horizontal support at 6500 as well as the historical psychological support level and the 0.618 fib level at 6000-5800.
A 30% correction from the 9100 local top should take us to the 0.50 fib level at 6500 (within the green box), and a 40% correction will take take us slightly below the 0.618 fib level straight to the 5500 area.
i do expect to see a reversal anywhere within the outlined support levels for a final wave 2 correction (if we are already in a bull market) before the next and longest leg— wave 3 begins IMO.
On the flip side, if prices were to break below 5000 all the way to below 4000, the bear market will automatically resume.
Finally, be on the look out for the 55 day EMA at around 6800-6900 as the as the acted as a nice support for the reversal in 2015. IF this were to happen again, (which i dont expect at this time), then 6800-6500 could just act as a reversal point IMO
While every other person and their grandmother were expecting to see a 9500-10000 level before reversal, the market movers and whales exited at 9000-9100 turning this area to a huge supply zone hence the sharp pull back on three occassions that price got near this level.
The final break out of the rising wedge and below the 20 day MA, shows that the correction has started, and the bears are in full control right now.
The recent bounce from the 0.38 fib level is nothing but a breather for the next leg downward IMO judging from the confluence of bearish factors on the higher time frame.
I do expect the correction to lead us straight to the 20 day MA (thin yellow line) at 8100, where i expect to see a rejection to contine the move downwards,
Below us is a confluence of support, the 55 day EMA (thin red line), the 50 day MA (thin purple line) and the horizontal support, all converging at the 6900-6800 level,
The 0.50 fib retracement level and the horizontal support at 6500 as well as the historical psychological support level and the 0.618 fib level at 6000-5800.
A 30% correction from the 9100 local top should take us to the 0.50 fib level at 6500 (within the green box), and a 40% correction will take take us slightly below the 0.618 fib level straight to the 5500 area.
i do expect to see a reversal anywhere within the outlined support levels for a final wave 2 correction (if we are already in a bull market) before the next and longest leg— wave 3 begins IMO.
On the flip side, if prices were to break below 5000 all the way to below 4000, the bear market will automatically resume.
Finally, be on the look out for the 55 day EMA at around 6800-6900 as the as the acted as a nice support for the reversal in 2015. IF this were to happen again, (which i dont expect at this time), then 6800-6500 could just act as a reversal point IMO
