Good morning everyone! So after an eventful end of the week, Bitcoin has a mini-crash where 150BTC was market sold causing a spike down in price to the demand zone around $6500, which was the breakout from the range. Sharp moves like this can be expected over the weekend due to the lack of volume making price easy to manipulate.
After tapping into the supply zone around $6750, Bitcoin has been unable to close above this area, which would have caused a bullish continuation to the next supply zone around $7100. However, we go the opposite where the corn bashed against resistance multiple times before giving way lower and currently below the 38.2%FIB. With harsh moves like the one we saw this weekend, we almost always fill the wick as the price did not spend much time trading there and becomes a magnet in attracting price back down. Knowing this, we could expect the price to return back to the breakout zone and it must hold or else we could see a breakdown. Although we had a breakout from the range, BTC seems to be in a channel where some will call it a bearflag and a break from this flag could bring a test of the demand zone around $6100.
In the recent past, Mondays usual serve as down days in the crypto market so if you are looking for areas to buy on a dip, make sure it is only a dip and not a pause before a continued move lower. Any break and close below the breakout level could spell bad news for BTC here but so far it is holding up well and we will continue to test higher.
Thanks guys!
After tapping into the supply zone around $6750, Bitcoin has been unable to close above this area, which would have caused a bullish continuation to the next supply zone around $7100. However, we go the opposite where the corn bashed against resistance multiple times before giving way lower and currently below the 38.2%FIB. With harsh moves like the one we saw this weekend, we almost always fill the wick as the price did not spend much time trading there and becomes a magnet in attracting price back down. Knowing this, we could expect the price to return back to the breakout zone and it must hold or else we could see a breakdown. Although we had a breakout from the range, BTC seems to be in a channel where some will call it a bearflag and a break from this flag could bring a test of the demand zone around $6100.
In the recent past, Mondays usual serve as down days in the crypto market so if you are looking for areas to buy on a dip, make sure it is only a dip and not a pause before a continued move lower. Any break and close below the breakout level could spell bad news for BTC here but so far it is holding up well and we will continue to test higher.
Thanks guys!