Possible Bitcoin Pullback to Daily .618 Fibonacci Support Zone
Simple Bitcoin analysis...
> Daily formed a double top at all time highs with bear MACD and now possibly breaking the recent lows, horizontal support & .382 fibonacci.
At this point...
1. Price can find support here at 58000.00 area/ recent lows, horizontal support, 50ema support & .382 fibonacci and move back up to recent highs.
2. Price can move back up from it's current support area and form a daily lower high (or just continue to fall from it's current price) and fall to 50500.00 area/ .618 fibonacci, horizontal support, trend line support & weekly 50ema support. Lots of support in the area for price to make a daily higher low and continue the current trend back up to all time highs.
3. If price breaks 0.618 / 0.75 fibonacci retracement support area as explained above ( 50500.00 to 47000.00 area ), it could move back down to daily recent lows around 41000.00 before finding support.
I will be looking at the intraday charts to see how price action develops in these areas and wait for the lower time frames to confirm the higher time frames before taking a trade long or short.
> Daily formed a double top at all time highs with bear MACD and now possibly breaking the recent lows, horizontal support & .382 fibonacci.
At this point...
1. Price can find support here at 58000.00 area/ recent lows, horizontal support, 50ema support & .382 fibonacci and move back up to recent highs.
2. Price can move back up from it's current support area and form a daily lower high (or just continue to fall from it's current price) and fall to 50500.00 area/ .618 fibonacci, horizontal support, trend line support & weekly 50ema support. Lots of support in the area for price to make a daily higher low and continue the current trend back up to all time highs.
3. If price breaks 0.618 / 0.75 fibonacci retracement support area as explained above ( 50500.00 to 47000.00 area ), it could move back down to daily recent lows around 41000.00 before finding support.
I will be looking at the intraday charts to see how price action develops in these areas and wait for the lower time frames to confirm the higher time frames before taking a trade long or short.
Comment:
After last update...
Daily formed a lower high at resistance, with deceleration and reversals and ran just past 40000.00 support area as expected, although I was expecting more of a wick.
Price is now decelerating and forming reversals at support but it looks very weak for a reversal.
At this point...price can form a bottom at 40000.00 support, we could form some reversal price action on the daily before starting a bull run. OR I could see price moving down to the stronger 30000.00 support area, and forming weekly double bottom reversal price action before starting the next long term bull run/trend.
If price breaks 30000.00, next support would be around 20000.00.
Daily formed a lower high at resistance, with deceleration and reversals and ran just past 40000.00 support area as expected, although I was expecting more of a wick.
Price is now decelerating and forming reversals at support but it looks very weak for a reversal.
At this point...price can form a bottom at 40000.00 support, we could form some reversal price action on the daily before starting a bull run. OR I could see price moving down to the stronger 30000.00 support area, and forming weekly double bottom reversal price action before starting the next long term bull run/trend.
If price breaks 30000.00, next support would be around 20000.00.
At this point...
> We could get deceleration and a bullish rejection from this support area (.618/.75 Fibonacci, weekly 50ema, trendline & horizontal support). This could of just been just a false breakdown of support.
OR
> Price could be making a dead cat bounce on the intraday, forming a lower high and starting a bearish intraday trend, confirming the continuation of a bearish daily run. Price could then move back down to the 44000 to 40000.00 / daily higher low support zone area before finding support.
IF price does reach 40000.00, there is probably a very good chance for a wick/dip below it as then price would be taking out a lot of stop losses positioned below the Sept 22-29,2001 daily higher low. If that happens and support does not hold, a drop to 30000.00 could be next, but would require a lot of support to be broken. That could lead to the formation of a weekly double bottom before the next bull run/trend.
I will be looking to the intraday price action/ trend development for confirmation of daily direction.