Bitcoin continues to trend down and now things start looking pretty ugly.
We've now spent more time under the 200-Day MA than we did in Sept.-Oct., which means that this time the market is actually weaker. We can have bounces while staying inside the downward channel, but until we break out, do not get overexcited.
The really bad news is that the 200-Day MA starts rolling over. With each passing day it is gaining negative slope. That is significant and not favoring the bulls. Just check what happens once this particular MA turns down.
According to VPVR and historical horizontals we have two major support zones (except for the point of control at 3.9k) :
1st - 7.9-8.3k
2nd - 6.2-6.6k
We pointed out and described these levels in mid October and back then we said: If we lose 8k support zone, fasten your seatbelts, 6.2-6.6k here we come.
As you see our 6.2-6.6k zone was reached on a wick on Nov. 25. That is the major support zone for the majority of people. And it really looks like. We have a high volume node at around 6.5k, in addition, 6k was a tremendous support for the market in 2018. The thing is that there's nothing under this last high volume node until low 4ks. It's like open air.
But is the 6.2-6.6k zone actually a major support? Let's take a look from another angle
If we take a look at VPVR and isolate it from 2018, we'll see that there is no support at low 6ks, instead we have a high volume node at 5.3k, where we consolidated for the whole month of April after the breakout.
Another reason why we may go significantly lower is that we are dealing with the parabolic growth aftermath. Whenever Bitcoin grows exponentially, historically it tends to fall by 80%. Does it have to happen this time? No, it doesn't, but it is worth mentioning.
5.3k is 0.786 Fib retracement from the beginning of the exponential growth at 4k.
Another important fact about low 5ks is that the 200-Week MA is coming there and will be at ~5.3k by February. This particular Moving Average is very important not only for Bitcoin, but in traditional markets as well. Everyone should be nervous if we go below it.
We have to be careful treating 6k as a major support, because we may blast trough it like we did in May of this year. For the crowd 6k is a really attractive opportunity to long with a pretty clear stop loss. And that's another reason why we are fated to go below it. Imagine how many panic sellers there will be if we lose 6k. So, you have to be mentally prepared for the 200-Week MA being hit again.
What do you think about it? Will we touch the 200-Week MA before the halving? Give us your opinion in the comments!
If you like the idea, please, hit the Like button and subscribe to the profile in order not to miss our updates.
The information given is never financial advice. Always do your own research.
We've now spent more time under the 200-Day MA than we did in Sept.-Oct., which means that this time the market is actually weaker. We can have bounces while staying inside the downward channel, but until we break out, do not get overexcited.
The really bad news is that the 200-Day MA starts rolling over. With each passing day it is gaining negative slope. That is significant and not favoring the bulls. Just check what happens once this particular MA turns down.
According to VPVR and historical horizontals we have two major support zones (except for the point of control at 3.9k) :
1st - 7.9-8.3k
2nd - 6.2-6.6k
We pointed out and described these levels in mid October and back then we said: If we lose 8k support zone, fasten your seatbelts, 6.2-6.6k here we come.
As you see our 6.2-6.6k zone was reached on a wick on Nov. 25. That is the major support zone for the majority of people. And it really looks like. We have a high volume node at around 6.5k, in addition, 6k was a tremendous support for the market in 2018. The thing is that there's nothing under this last high volume node until low 4ks. It's like open air.
But is the 6.2-6.6k zone actually a major support? Let's take a look from another angle
Another reason why we may go significantly lower is that we are dealing with the parabolic growth aftermath. Whenever Bitcoin grows exponentially, historically it tends to fall by 80%. Does it have to happen this time? No, it doesn't, but it is worth mentioning.
5.3k is 0.786 Fib retracement from the beginning of the exponential growth at 4k.
Another important fact about low 5ks is that the 200-Week MA is coming there and will be at ~5.3k by February. This particular Moving Average is very important not only for Bitcoin, but in traditional markets as well. Everyone should be nervous if we go below it.
We have to be careful treating 6k as a major support, because we may blast trough it like we did in May of this year. For the crowd 6k is a really attractive opportunity to long with a pretty clear stop loss. And that's another reason why we are fated to go below it. Imagine how many panic sellers there will be if we lose 6k. So, you have to be mentally prepared for the 200-Week MA being hit again.
What do you think about it? Will we touch the 200-Week MA before the halving? Give us your opinion in the comments!
If you like the idea, please, hit the Like button and subscribe to the profile in order not to miss our updates.
The information given is never financial advice. Always do your own research.
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🚀💰 REGISTER HERE AND GET UP TO $30,000 WELCOME BONUS -> partner.bybit.com/b/cryptobullet
Twitter link: twitter.com/CryptoBullet1
