With the recent pump blasting us price over the 20 & 50 moving averages I will be looking for a pull back to the 43.6k area.
This area has a lot of confluence as it marks the 0.382 level of the fib, there is historical support/resistance, it marks the neckline of the weekly double bottom and the weekly 20 moving average.
If we can back test this area and hold it as support, we should see a move towards the upside and the 52k area which is the 0.618 level of the fib, historical resistance area and would be the target area of the double bottom.
It will be interesting to see if we do indeed back test the 43.6k area or if we fly straight up to 52k there is a possibility of a deadcat bounce for a further move to the downside.
As always leave a like and let me know your thoughts
This area has a lot of confluence as it marks the 0.382 level of the fib, there is historical support/resistance, it marks the neckline of the weekly double bottom and the weekly 20 moving average.
If we can back test this area and hold it as support, we should see a move towards the upside and the 52k area which is the 0.618 level of the fib, historical resistance area and would be the target area of the double bottom.
It will be interesting to see if we do indeed back test the 43.6k area or if we fly straight up to 52k there is a possibility of a deadcat bounce for a further move to the downside.
As always leave a like and let me know your thoughts