BTC is sitting on a very critical support!

On the weekly chart we see that the BTC price is stuck between the 50-Week EMA (support) and 30-Week MA (resistance).
The 30-Week MA was important in 2018, because it supported the price in February and perfectly rejected the price in Spring & Summer. The 30-Week MA is almost the same as 200 MA on the daily (currently at 8740), so if we are able to reclaim it, this will be a signal for the bulls to step in and drive the price above 9k. But the way it looks right now, it is reminiscent of 2018 Bear and we should pay attention to lower levels. If this thing starts approaching the 50-Week EMA again, we will see new lows.

Is the 50-Week EMA the only thing that keeps us from falling down? Certainly not.

We’ve been consolidating at low 8ks for quite a while and it's no wonder! We are sitting on a very critical support not only from the MAs perspective.

Back in July we published an idea called “BTC: Fasten Your Seatbelts!” where we pointed out two ascending trendlines. The first broke down in July and 2 month later we reached our target zone and found support at the second trendline. Perfect precision, isn’t it?

Note that also we are sitting on a strong horizontal level which is confirmed by Horizontal Volume. The next level of this kind is at ~6.5k.

So, for now we are being held by a very strong support cluster:
50-Week EMA
Ascending Trendline
Strong Horizontal Level
0.618 Fib
High Volume Node

If we lose this support, fasten your seatbelts again. We have strong horizontal level at 7300, but that’s not enough. In case of a breakdown, we can find strong support at 6.2-6.6k, because it is Strong Horizontal Level + High Volume Node + 0.786 Fib and it's the ultimate target of the Descending Triangle breakdown.


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Comment:

Critical support broke down eventually. Our first important level at 7350 reached!

Comment:

The price bounced off of the important level of 7350 we pointed out and managed to close the weekly above the breakdown level of the descending triangle. Very Impressive! The ascending trendline is still valid.

Comment:

Support at 6.2k-6.6k reached!