In the last analysis I attempted to buy a hidden support zone and profit from a corrective move, however the bears are still in force and are destroying the marketplace! Even that last down move I didn't see coming. Sometimes however prepared and "In the loop" you are, you cannot always predict market sentiment correctly (Asides from the fact it's mathematically impossible to be right every time). Something happened today which pretty much defined Bitcoins short term future which I will share with you in this analysis. Unfortunately for anyone hoping for market to recover as I hoped, it's not going to, for now. The market is likely going to continue it's downside path. Why is this?
Bitcoin today broke a level that was not only a long term uptrend supporter, but also a structure supporter which was endorsing uptrend. When price broke this level Bitcoin was basically doomed to fail here. If you take your attention to the dotted line on my chart, this level was the side-wards support level for the uptrend. It was pushing Bitcoin to higher lows and significantly effecting the uptrend. However, when we broke this, the uptrend integrity was immediately shaken. this alone wouldn't have been TOO bad, and we could have possibly figured out a good way to wiggle out of the situation. HOWEVER, then something else happened, price broke the primary structure support zone which is the single horizontal line on my chart. When price broke this line, it destroyed the entire progress of Bitcoins up move since June 29th because price was no longer able to find support on the lows.
Bitcoin can now do one of the following:
1) Bitcoin, during this correction, has a corrective up move to retest the structure support/side-wards support lines turned resistance before having another leg down to the horizontal support zone at 5820.
2) Bitcoin goes to the downside without correction, hitting 5820 before we then watch for a bounce.
Bear in mind that IF Bitcoin was to break the structure support line, this would be a very bullish sign, and may well negate the down move that has just started, so you should keep a sharp eye on this.
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Bitcoin today broke a level that was not only a long term uptrend supporter, but also a structure supporter which was endorsing uptrend. When price broke this level Bitcoin was basically doomed to fail here. If you take your attention to the dotted line on my chart, this level was the side-wards support level for the uptrend. It was pushing Bitcoin to higher lows and significantly effecting the uptrend. However, when we broke this, the uptrend integrity was immediately shaken. this alone wouldn't have been TOO bad, and we could have possibly figured out a good way to wiggle out of the situation. HOWEVER, then something else happened, price broke the primary structure support zone which is the single horizontal line on my chart. When price broke this line, it destroyed the entire progress of Bitcoins up move since June 29th because price was no longer able to find support on the lows.
Bitcoin can now do one of the following:
1) Bitcoin, during this correction, has a corrective up move to retest the structure support/side-wards support lines turned resistance before having another leg down to the horizontal support zone at 5820.
2) Bitcoin goes to the downside without correction, hitting 5820 before we then watch for a bounce.
Bear in mind that IF Bitcoin was to break the structure support line, this would be a very bullish sign, and may well negate the down move that has just started, so you should keep a sharp eye on this.
Please leave a LIKE. I'd really appreciate it.
Thank you for your support.
Bear in mind that regardless of corrective move, I still believe we are hitting 5800 support eventually, and this thought process will only be negated if price breaks above 7200.
Please leave a LIKE. I'd really appreciate it.