So as I told you in my last BTC analysis (you can see it in the related ideas section just below), I expected more downside to come for Bitcoin since it was overbought and testing it's 200 daily moving average, which is a crucial resistance. I'm now looking for support and where Bitcoin could eventually bounce. This is what I see :
First support zone between 8k to 8.2k :
We have strong resistances there with the 50 (orange line) and the 300 (yellow line) simple moving averages and the long strong turquoise trend line. You can see this zone with the yellow circle I drew on the chart.
Second support zone between 7.2k to 7.7k :
We also have strong support there which you can see with the blue rectangle and the 50 weekly sma around 7.4k (the little turquoise line). Also, the RSI should be oversold if Bitcoin drop into that area and this could mean a strong bounce for BTC.
I don't think BTC will go under the second support zone before having a strong bounce around 9k.
We can of course also see a beautiful big bear flag on the 4h and 1h charts which could lead BTC to that second support zone...
Good luck with your trading guys !
Stay tuned for more updates,
Fred
First support zone between 8k to 8.2k :
We have strong resistances there with the 50 (orange line) and the 300 (yellow line) simple moving averages and the long strong turquoise trend line. You can see this zone with the yellow circle I drew on the chart.
Second support zone between 7.2k to 7.7k :
We also have strong support there which you can see with the blue rectangle and the 50 weekly sma around 7.4k (the little turquoise line). Also, the RSI should be oversold if Bitcoin drop into that area and this could mean a strong bounce for BTC.
I don't think BTC will go under the second support zone before having a strong bounce around 9k.
We can of course also see a beautiful big bear flag on the 4h and 1h charts which could lead BTC to that second support zone...
Good luck with your trading guys !
Stay tuned for more updates,
Fred
