Today Bitcoin has tested the support at $6280, which previously has been rejected. This is a 427.2% Fibonacci retracement level applied to the corrective wave after the ascending channel breakout. BTC/USD still struggling to break below the support which might result in a consolidation between the $6280 and $6330 levels.
While the price is stuck between the support and resistance, trend is considered sideways. Although it is reasonable to wait for the breakout, either above the $6330 resistance or below the $6270 support.
Break below the support at this point seems to be more probable, since the trend is clearly bearish. In this scenario, price would reach next Fibonacci retracement level at $6230. But if it breaks above the resistance, more gains can be expected. BTC then could rise towards the $6380 or $6420 level, confided by the 127.2% Fibs, along with the price where the most trading volume had been generated previously.
While the price is stuck between the support and resistance, trend is considered sideways. Although it is reasonable to wait for the breakout, either above the $6330 resistance or below the $6270 support.
Break below the support at this point seems to be more probable, since the trend is clearly bearish. In this scenario, price would reach next Fibonacci retracement level at $6230. But if it breaks above the resistance, more gains can be expected. BTC then could rise towards the $6380 or $6420 level, confided by the 127.2% Fibs, along with the price where the most trading volume had been generated previously.
Trade closed: target reached
Comment:
Downside target reached and rejected cleanly. Need to see whether it will be a bounce of break below in the coming days