BITCOIN BOTTOMED? TREND REVERSAL LOOMING AS VOLUME DIMINISHES...
Been away for a couple of days, and i want to believe we are all doing well even as we await a final reversal from this 10 months bear market.
In my last chart, i was still leaning bearish that we had some further downside to come after a possible sideways move and a retest of the $6800 resistance. We also did warn of a possible stiff resistance at $6500 area being a confluence of the horizontal resistance and the 0.618 fib level.
Guess our analysis has been spot on as we have been rejected 3 times now at the $6500 resistance area, thus causing price to hover around $6250-$6500 in the last 72 hours. Will the $6500 resistance eventually break? or will we be heading down from here? Time will tell......
Focusing on the daily however, an interesting pattern seems to be emerging which i believe we all should be paying attention to.
Having formed series of lower highs and lower lows from the begining of this bear market up on till June ending 2018 when price bottomed out at $5775, price has since the been forming lower highs and higher lows
This series of emerging higher lows, decreased volatility, diminishing volume, and the strong consolidation range otherwise called the "MAGNETIC ZONE" between $6800-$6000 which price has often found itself again and again before going on a new rally in the last 2+ months is gradually forming into a complete rounded bottom for the bulls, which i believe will eventually act as a catalyst that will spur up a bull season IMO.
While the descending triangle formation is bearish and could lead to a break to the downside, the symetric triangle is bullish, and could lead to a break to the upside.
With RSI pointing downwards and nearing support, i did expect a correction to $6200-$6150, followed by a bounce on RSI support and a sideways movement of price within the magntic zone before retesting the $6800 resistance.
If price continues to form lower highs and higher lows, i did expect a correction from the $6800 resistance level, and then a possible bounce from the uptrend line support of the symetric triangle to give us our 3rd or 4th higher low followed by an eventual break out of the symetry by Nov 2018, and then a correction back to the trendline resistance which should now be acting as support by then, followed by a sideways move along the arc to give us a perfect and complete rounded bottom that will eventually kick start an uptrend IMO..........just like we saw in the 2013/2014 bear market chart.
On the flip side, a break below the uptrendline support of the symetric triangle will send us straight to the horizontal line support of the descending triangle to retest previous lows. if the bulls fail to defend the $6000-$5800 support area, price will head straight for the $5k support as the $5300 support area is very weak, and if the $5k support break, that will mean a free fall sinking price to the $4k level as there are no strong support to contend with on the way down.
In my last chart, i was still leaning bearish that we had some further downside to come after a possible sideways move and a retest of the $6800 resistance. We also did warn of a possible stiff resistance at $6500 area being a confluence of the horizontal resistance and the 0.618 fib level.
Guess our analysis has been spot on as we have been rejected 3 times now at the $6500 resistance area, thus causing price to hover around $6250-$6500 in the last 72 hours. Will the $6500 resistance eventually break? or will we be heading down from here? Time will tell......
Focusing on the daily however, an interesting pattern seems to be emerging which i believe we all should be paying attention to.
Having formed series of lower highs and lower lows from the begining of this bear market up on till June ending 2018 when price bottomed out at $5775, price has since the been forming lower highs and higher lows
This series of emerging higher lows, decreased volatility, diminishing volume, and the strong consolidation range otherwise called the "MAGNETIC ZONE" between $6800-$6000 which price has often found itself again and again before going on a new rally in the last 2+ months is gradually forming into a complete rounded bottom for the bulls, which i believe will eventually act as a catalyst that will spur up a bull season IMO.
While the descending triangle formation is bearish and could lead to a break to the downside, the symetric triangle is bullish, and could lead to a break to the upside.
With RSI pointing downwards and nearing support, i did expect a correction to $6200-$6150, followed by a bounce on RSI support and a sideways movement of price within the magntic zone before retesting the $6800 resistance.
If price continues to form lower highs and higher lows, i did expect a correction from the $6800 resistance level, and then a possible bounce from the uptrend line support of the symetric triangle to give us our 3rd or 4th higher low followed by an eventual break out of the symetry by Nov 2018, and then a correction back to the trendline resistance which should now be acting as support by then, followed by a sideways move along the arc to give us a perfect and complete rounded bottom that will eventually kick start an uptrend IMO..........just like we saw in the 2013/2014 bear market chart.
On the flip side, a break below the uptrendline support of the symetric triangle will send us straight to the horizontal line support of the descending triangle to retest previous lows. if the bulls fail to defend the $6000-$5800 support area, price will head straight for the $5k support as the $5300 support area is very weak, and if the $5k support break, that will mean a free fall sinking price to the $4k level as there are no strong support to contend with on the way down.
