Bitcoin Bears are Forcing a Retracement - $17.5 test likely
Bitcoin is clearly on a retracement pattern. The gains have just been too strong and the market is venting.
The test of the 0.236 fib. retracement at ~$17.5k seems inevitable. This may not be the strongest support as Bitcoin is breaking the higher lows trend line (upper green arrow).
That leaves $17k to hold. Keep in mind the massive gains on Bitcoin over the last weeks and month.
A retracement seems healthy to have and gives the bulls a breather and opens up investment opportunities before the departing to new all-time highs.
The 0.382 fib retracement just above $16k seems also be a fair bear cave to seek. Remains to be seen if the bulls can scare the bears away from that direction.
It is treacherous territory however as we are moving out and about all-time highs with plenty of short bears trying to make their gains in pulling Bitcoin down as everybody seems to be fixated on Bitcoin breaking the 20k margin for good. As altcoins are not using Bitcoins weakness to gain on Bitcoin we are in a downward channel and Bitcoin will have to proof at one point that it's still riding on the bull.
So short-term (next couple of days) my mood is short on Bitcoin...mid-term neutral (next couple of weeks) and long-term still very much bullish.
The test of the 0.236 fib. retracement at ~$17.5k seems inevitable. This may not be the strongest support as Bitcoin is breaking the higher lows trend line (upper green arrow).
That leaves $17k to hold. Keep in mind the massive gains on Bitcoin over the last weeks and month.
A retracement seems healthy to have and gives the bulls a breather and opens up investment opportunities before the departing to new all-time highs.
The 0.382 fib retracement just above $16k seems also be a fair bear cave to seek. Remains to be seen if the bulls can scare the bears away from that direction.
It is treacherous territory however as we are moving out and about all-time highs with plenty of short bears trying to make their gains in pulling Bitcoin down as everybody seems to be fixated on Bitcoin breaking the 20k margin for good. As altcoins are not using Bitcoins weakness to gain on Bitcoin we are in a downward channel and Bitcoin will have to proof at one point that it's still riding on the bull.
So short-term (next couple of days) my mood is short on Bitcoin...mid-term neutral (next couple of weeks) and long-term still very much bullish.
