BITCOIN AT A CRITICAL LEVEL | ARE WE GOING LOWER NEXT 24 HOURS?
As per my previous post Bitcoin has been in what appears to be a bullish pennant from which we have been waiting for the price to break to the upside within 3 days. We now are on day 2 and we have seen the price of BTC fall to the bottom of the support line of this pennant formation....
HOWEVER...
We have had a lot of you worried as there has been a wick to the downside where price broke out of this pennant briefly and we went down to $55589 level before recovering back to $57500...
We are NOW trading back inside this bullish pennant ...
WE ARE YET TO CLOSE THE DAILY CANDLE AND IT IS CRUCIAL WE CLOSE WITHIN THIS BULLISH PENNANT IN ORDER TO ENSURE IT REMAINS VALID - ANY CLOSE BELOW $57000 THEN I WILL BE FLIPPING BEARISH IN THE SHORT TERM.
A close below $57000 will also break our secondary trend support line where we have been creating higher lowers since the 28th February on it and which has also been acting as support. Any break below is certainly bearish short-term.
My Optimistic Scenario is I see price hold the $57000 level and stay with this Bullish Pennant and come Monday (Tomorrow) - when the markets are open we see us break out of this to the upside. Last weekends breakout as i already mentioned was a fake out and lacked volume , left a CME's futures gap and also left the Big institutions missing out. We have also currently found support on the 20 Day MA which is positive for now.
A close below $57000 will see the bullish pennant being invalidated and if we break the secondary support trend line - then I see prices falling lower and our next area of support will be at the $52500 level which is represented by our primary outer yellow upward trend channel. If this fails then the worst scenario would be a touch at the 50 Day MA at around $49600 to $50000.
Either way the longer it takes for the bull trend to resume the higher we go, this period of consolidation is very good for the Price of BTC . If it is taking this long to break the $60k level then the breakout will also be explosive.
These are my thoughts.
What is your analysis?
Mujahaid.
p.s. PLEASE FOLLOW AND COMMENT - Greatly appreciated.
HOWEVER...
We have had a lot of you worried as there has been a wick to the downside where price broke out of this pennant briefly and we went down to $55589 level before recovering back to $57500...
We are NOW trading back inside this bullish pennant ...
WE ARE YET TO CLOSE THE DAILY CANDLE AND IT IS CRUCIAL WE CLOSE WITHIN THIS BULLISH PENNANT IN ORDER TO ENSURE IT REMAINS VALID - ANY CLOSE BELOW $57000 THEN I WILL BE FLIPPING BEARISH IN THE SHORT TERM.
A close below $57000 will also break our secondary trend support line where we have been creating higher lowers since the 28th February on it and which has also been acting as support. Any break below is certainly bearish short-term.
My Optimistic Scenario is I see price hold the $57000 level and stay with this Bullish Pennant and come Monday (Tomorrow) - when the markets are open we see us break out of this to the upside. Last weekends breakout as i already mentioned was a fake out and lacked volume , left a CME's futures gap and also left the Big institutions missing out. We have also currently found support on the 20 Day MA which is positive for now.
A close below $57000 will see the bullish pennant being invalidated and if we break the secondary support trend line - then I see prices falling lower and our next area of support will be at the $52500 level which is represented by our primary outer yellow upward trend channel. If this fails then the worst scenario would be a touch at the 50 Day MA at around $49600 to $50000.
Either way the longer it takes for the bull trend to resume the higher we go, this period of consolidation is very good for the Price of BTC . If it is taking this long to break the $60k level then the breakout will also be explosive.
These are my thoughts.
What is your analysis?
Mujahaid.
p.s. PLEASE FOLLOW AND COMMENT - Greatly appreciated.