In the hourly chart, we can see various elements that support the price is going to correct:
1) BTC hit a new high at around 17480$ today, not much higher than the one it hit on December 8th, this could result in a double top formation.
2) The failure to make a new ATH in a strong way created a divergence in the MACD, showing losing bullish momentum.
3) The 200 periods SMA, which has served as support in various occasions in the past, has been prolonged (in the most sensible way I could find) and it touches the 50% Fib. retracement in a critical point, around 15000$. Why is that level important?
Because it is a "big even", a round, psychologically relevant number. Because it is where the 200 SMA and the 50% Fib retracement intersect (as stated above). Because the last BTC correction followed a downward angle of 48°, and, if it happened again, it would again hit that critical 15k.
This is why I believe the price will go there. It might fall more, but I think there is just too much support, both technically and fundamentally, right now.
Shorting BTC at this time of history is dangerous, of course, so a stop loss order should be placed just above the most recent high, around the 17550$ level.
I am not a financial advisor, this is just my personal opinion. Any comment is appreciated.
1) BTC hit a new high at around 17480$ today, not much higher than the one it hit on December 8th, this could result in a double top formation.
2) The failure to make a new ATH in a strong way created a divergence in the MACD, showing losing bullish momentum.
3) The 200 periods SMA, which has served as support in various occasions in the past, has been prolonged (in the most sensible way I could find) and it touches the 50% Fib. retracement in a critical point, around 15000$. Why is that level important?
Because it is a "big even", a round, psychologically relevant number. Because it is where the 200 SMA and the 50% Fib retracement intersect (as stated above). Because the last BTC correction followed a downward angle of 48°, and, if it happened again, it would again hit that critical 15k.
This is why I believe the price will go there. It might fall more, but I think there is just too much support, both technically and fundamentally, right now.
Shorting BTC at this time of history is dangerous, of course, so a stop loss order should be placed just above the most recent high, around the 17550$ level.
I am not a financial advisor, this is just my personal opinion. Any comment is appreciated.
Comment:
The price touched the square target I drew.
Comment:
Rectangular target, actually.
Trade closed: target reached:
Price has bounced up from the target-support, as the green arrow I put in the chart indicated.