All bitcoin did yesterday is to test the 10 EMA on the daily and check in at the .5 fib retracement area from the recent swing low. The downward momentum does not seem to be quite over yet, but there is no significant technical damage so far. Until there is a daily close below $32,400 area, it could only be a minor pitstop along the way. The long wicks on these bullish hammer type candles are something to track. These are the price points that thwarted the dumps and picked the price back up. There are a couple to keep watch; the recent one at $34,445 (depending on the exchange) and the previous one at $ 27,678. These could be the areas that the real correction can get support or a break of these will mean a bigger pullback. With the latest price action, it is time to look for RSI divergences on the daily chart. Bitcoin hasn't made a real sustained correction without creating some bearish divergences on the RSI and MACD histogram first. This also means that higher prices are most likely in the making in the upcoming couple of weeks, this is bitcoin; anything is possible. If between .5 and .382 holds, which means, price does not close below $32,400 on the daily close basis, I would look for the fib extension levels and see if RSI makes a lower high at each of these points. Bitcoin has been over extended since it broke out off the upward channel. But it doesn't mean it cannot go any higher. Guessing tops and bottoms are futile in this market. Risk management is the key in this situation.
