Bitcoin Technical Analysis 2021/06/04: ELON FUD&CRITICAL SUPPORT
As mentioned in the previous post, there are three patterns playing out right now in Bitcoin. The largest pattern in the symmetrical triangle, while the two smaller patterns are the ascending channel and the W-bottom breakout pattern.
As predicted, price came up to test the resistance zone of 39K, which is the confluence of the ascending channel resistance and the symmetrical triangle resistance. Price actually broke out of this zone, and just as price was about to confirm the breakout, Elon Musk posted a FUD tweet, insinuating that he was breaking up with Bitcoin, causing the price to dump back down within the symmetrical triangle and now testing the bottom of the channel at around 36.5K. This is a critical short term support area, as a breakdown from this zone opens up the doors for a drop down to 34K, which is the bottom trendline support of the symmetrical triangle. Unfortunately, price hasnt had a strong bounce, but rather consolidating below the trendline support of the ascending channel, which means overall structure is leaning bearish. I would exercise caution here and wait for price action to develop, and likely waiting for the break of the symmetrical triangle to make a trade as there is a high likelihood of manipulation and choppy price action in the short term.
As always, I’m not a financial advisor, do your own research, and stay safe!
As predicted, price came up to test the resistance zone of 39K, which is the confluence of the ascending channel resistance and the symmetrical triangle resistance. Price actually broke out of this zone, and just as price was about to confirm the breakout, Elon Musk posted a FUD tweet, insinuating that he was breaking up with Bitcoin, causing the price to dump back down within the symmetrical triangle and now testing the bottom of the channel at around 36.5K. This is a critical short term support area, as a breakdown from this zone opens up the doors for a drop down to 34K, which is the bottom trendline support of the symmetrical triangle. Unfortunately, price hasnt had a strong bounce, but rather consolidating below the trendline support of the ascending channel, which means overall structure is leaning bearish. I would exercise caution here and wait for price action to develop, and likely waiting for the break of the symmetrical triangle to make a trade as there is a high likelihood of manipulation and choppy price action in the short term.
As always, I’m not a financial advisor, do your own research, and stay safe!
