CrypTedor

Bitcoin, Third Support Zone Analysis - What Now?

BITFINEX:BTCUSD   Bitcoin / U.S. Dollar
On May 18, in our first Bitcoin Analysis, we identified Three main Bullish Inversion Spots (yellow circles). In both the previous areas, the price did a weak bounce before breaking down the zone. In that same Analysis we talked about the Final Phase of the long-term Triangle Pattern; we said that the Breakout was close and that it was only confirmed by a strong break down of the Third Support Zone.
Here we are!
The breakout happened and we are right on our Third Support Zone . What Now?
Now the Bears are in control and the Downward Trend is still Strong.
As you can see from the Chart, we identified two new Support Areas that will be tested if the current level will break down. The RSI is getting Oversold again and the lower band acted as a Strong Support before. In this moment i'm fully Neutral.
Remember that Newton's third law is: For every action, there is an equal and opposite reaction. This law also applies to Financial Markets and it's one of the primary principles of Technical Analysis .

Sky is not the Limit

The informations and the strategies discussed are NOT recommendation to buy, sell or trade any securities. They are strictly for educational and illustrative purposes.
8k Resistance next ;)
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