BTCUSD – Could the Bitcoin decline towards $20k ?

22 thg 8, 2021

BTCUSD - having topped on 14th April at $64,895.22 (on Bitstamp) its initial decline appears to be a leading diagonal of 3-3-3-3-3 structure completing on 20th July.

The rally since then has approached the proximity of 61.8% retracement around 50k - 52K as potential area of structural resistance, in an abc zigzag accompanied with multiple divergences on momentum indicators suggesting it might be forming a possible top of retracement bounce.

If this holds then retest of July low is very likely. If the next leg bearish leg has price symmetry with the initial leg then this projects possible decline towards 20k upon failure of July low to hold.

For perspective see the following time frame:


A Weekly Chart:


Similar retracement bounces are likely to be topping for other related instruments, for example:
LTCUSD


ETHUSD


And XMRUSD


Caution
This is my interpretation of price action using TA approach that I consider helps me the most, but could be completely wrong. Therefore, as always, do your own analysis for your trade requirement and ignore my views.

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DanV

23 thg 8, 2021

Ghi chú

The wave "c" of abc retracement bounce was rather short. It seems like this one is developing in to another ending diagonal (minor rising wedge) If correct the it might complete around 52K

5 thg 9, 2021

Ghi chú

Bitcoin is on the move. Will be very interesting to see how it reacts around 52k. Wave C also appears to be a diagonal.
During most this move volume has been falling and momentum indicators have been weakening. So unless price really picks up speed, it might form retracement top.

7 thg 9, 2021

Ghi chú

12Hr Chart above shows it retraced 2/3rd (66.66%) of the decline from April high in what appears to be potential abc zigzag, suggesting that this was a corrective bounce, which seems complete. If correct then most likely we might commence 2nd bearish cycle to develop OR morph in to some larger congestion pattern.


In 15 min time frame might be showing a 5 wave decline which if correct it would be impulsive decline suggesting further price weakness is most likely to follow.


Weekly Chart above we can note a developing bearish look with RSI potentially finding resistance at 60 and PPO might hook make a bearish hook if price continues to weaken.