Right now Bitcoin is exhibiting similar signs as earlier scenarios. After a short decline (which just occurred over the last week), stability returned. This stability looks to be temporary however, as if you look at the red boxes I've mapped out, they all have similar patterns and conclude into the long orange boxes just below them.
The pattern is the following:
- Red candles first fall out of the Bollinger bands
- Short decrease occurs
- Drop below EMA 200
- Temporary stability re-occurs (re-entrance into band territory)
- Wraps around the mid-line of the Bollinger bands
- Coiling behaviour soon turns into deep dropping behaviour
Snake Coiling to Prey Strike: snatching up previous Bitcoin levels (scroll left and lower on chart to see line indicators and areas they align with). Remember, we are still at this point in a down trend, which further supports this train of thought for the next big move.
Currently, it appears Bitcoin will drop into roughly the $4800 territory levels. I've highlighted the area in an orange box where I expect the carnage to play out.
The pattern is the following:
- Red candles first fall out of the Bollinger bands
- Short decrease occurs
- Drop below EMA 200
- Temporary stability re-occurs (re-entrance into band territory)
- Wraps around the mid-line of the Bollinger bands
- Coiling behaviour soon turns into deep dropping behaviour
Snake Coiling to Prey Strike: snatching up previous Bitcoin levels (scroll left and lower on chart to see line indicators and areas they align with). Remember, we are still at this point in a down trend, which further supports this train of thought for the next big move.
Currently, it appears Bitcoin will drop into roughly the $4800 territory levels. I've highlighted the area in an orange box where I expect the carnage to play out.
Comment:
Into the orange box we've gone. Expect some resistance here at the top around $7800-7900. Bitcoin is well on it's way right now into the predicted area.
