The dollar is back at resistance & very close to the 78.6 fib retracement level. This is a MOB (Make Or Break) situation. We can fall very hard from here or we can get back above the trend line to higher levels.
We broke out the trendline ! let's see if we can get a retest of that trendline or around $31 600 which is the daily close support level. Should form a beautiful inverse head & shoulders pattern back to $ 34 500
It's pretty obvious we're heading to the 40's now.
We are forming a perfect eliot wave. This is the last leg (5) down to our bottom structure. All the RSI's are oversold + Bullish divergence is showing everywhere.
$0.46 is also the weekly MA which is very important.
in all the cycles since 2014 $BTC never went below the 50MA (moving average). The 50ma is an average of the last 50 weekly candles. structure is overall bearish but this indicates a very bullish momentum incoming very soon. We will bounce of this trendline anytime.
We closed previous week candle below all the support zones from the previous weekly closes. We are now trading below this zone which indicates a very bearish continuation trend. If we don't bounce here $27 800 is next ! alts will crash again when we don't bounce.
We've seen a -63% correction in 2017 (previous cycle) before we did a 1500% gain 4 weeks later.
We are now at a -66% correction in the market.
If we copy previous cycle it would take us to $10
Perfect ABC correction with a beautiful consolidation afterwards! Building up momentum for the next impsulsive move to the 1.618 fib extension at $0.284.
If we close today above $0.066 then the next resistance is $0.107 & 13.7.
It can fall another 10% before we see more upside momentum. If you look at history there was always a retest of the 100MA in a big correction which align with the support levels.
altcoins can fall another 20% be aware.