Price recently began a corrective move to the downside after a strong upside move. Since price has been correcting, there has been a strong down move.
At this present moment, there is 2 major levels I have in mind for BTC/USD for a correction. We would prefer see the correction higher as this increases the likelihood of the up trend continuing, but this might not be possible as price action currently looks like it will fail at the preferred correction area. I am now putting my bets on the correction ending in the support zone (correction level #2) at 11880.
The correction levels I am expecting price to hit are:
-14100. This is the sideways resistance level turned support. A retest on this level would confirm the long term uptrend resistance is broken and not Bitcon can trade freely without structure restrictions. It currently looks extremely weak and I do believe that if price breaks below 12900, then this structure has definitely failed. For now, it could still retrace, but I wouldn't hold my breath. -11880. This is the last major structure support that Bitcoin had. This level is a strong support and will likely be the level that will catch Bitcoin as it tumbles. I am putting my bets on this area being the level where price bounces and begins a new upside move.
A move to 11880 would be a steep correction, but it would retest a major structure level at the same time. So we want to see this happen. If price breaks this level it could show a lack of integrity in Bitcoin uptrend.
I have also tagged my other recent Cryptocurrency ideas in the related ideas. See the related ideas at the bottom of this post. Please give all my content a like as it motivates me to continue posting.
I will be updating this analysis as it progresses.
@Chandi49, "-14100. This is the sideways resistance level turned support. A retest on this level would confirm the long term uptrend resistance is broken and not Bitcon can trade freely without structure restrictions. It currently looks extremely weak and I do believe that if price breaks below 12900, then this structure has definitely failed. For now, it could still retrace, but I wouldn't hold my breath." :-)
TomProTrader
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@Chandi49, Yes, yes. That is exactly what I am saying.
If you read above properly, I state that if price breaks below 12900, that there will be a steeper correction to the downside, which will mean a long opportunity.
If price does not correct before 12900 (As it says above) then it will likely go to the lower correction.
TomProTrader
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@TomProTrader, If price does correct and bounces at 12900, then price will start to travel to the highs*
Chandi49
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@TomProTrader, ok lets watch. I actually agree with you but im starting to believe its difficult to trade BTC on technicals only. I think this maybe a correction before futures tomorrow.
TomProTrader
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@Chandi49, I am compelled to agree with you too. Technicals will begin to mean less now, with futures introduction. This correction could just be a phase before futures are introduced into the marketplace.
Juandi
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do you think the price will be up to 16k or more before new year? or maybe the first month of january?
Anyway thanks for your analysts, this helps much
TomProTrader
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@Juandi, With futures on the horizon this is quite a difficult question to answer. I assume price will be above the primary support structure at 11800, but that is all I am quite sure of.
Thanks for your compliments.
Juandi
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@Juandi, but you can assume for a long term investment, can the price will go up atleast 15-16k? i'm thinking to buy in at 12k when it happen