First we'll start with the facts to make sure things are clear for everybody since the chart have a lot of data on it...
1) Bitcoin just broke the second yellow line (growth B) which is very bearish
2) If we break 6k, next stop is around 4.5k. this is a strong support (Support A)
3) If we break 4.5k next stop is 3k. Volume was nuts there. This is an even stronger support (Support B + Growth A)
4) If we break 3k next stop is 1.3k. A gap has to be filled here. This is the lowest spot I think BTC could drop before the start of a new bull cycle (support C)
5) Green arrows show a direction to new all time high. But even if it fail to go to new ATH, BTC will still pump hard from those areas before continuing it's drop
Those 3 possibilities are really worst case scenarios, especially the last one. I don't think Bitcoin will take a dive to 1.3k (even if BTC usually always filled it's gap... But it's a possibility, keep this in mind). However, since BTC broke it's last trend line (Growth B line), we could see more blood coming in the streets of the crypto market and Scenario A is really possible now. Of course, before a drop around 4-5k we have couple supports area. The first one is at the current level (9.2k) on the 78% fib retrace (It will probably not hold) and the second one is at the last BTC low, 6k (volume was huge so this mean there was a lot of buyers in this area, this is a good support). I personally think we will go visit the 4.5k zone before the start of a new bull cycle.
Stay tuned for more updates,
Fred
1) Bitcoin just broke the second yellow line (growth B) which is very bearish
2) If we break 6k, next stop is around 4.5k. this is a strong support (Support A)
3) If we break 4.5k next stop is 3k. Volume was nuts there. This is an even stronger support (Support B + Growth A)
4) If we break 3k next stop is 1.3k. A gap has to be filled here. This is the lowest spot I think BTC could drop before the start of a new bull cycle (support C)
5) Green arrows show a direction to new all time high. But even if it fail to go to new ATH, BTC will still pump hard from those areas before continuing it's drop
Those 3 possibilities are really worst case scenarios, especially the last one. I don't think Bitcoin will take a dive to 1.3k (even if BTC usually always filled it's gap... But it's a possibility, keep this in mind). However, since BTC broke it's last trend line (Growth B line), we could see more blood coming in the streets of the crypto market and Scenario A is really possible now. Of course, before a drop around 4-5k we have couple supports area. The first one is at the current level (9.2k) on the 78% fib retrace (It will probably not hold) and the second one is at the last BTC low, 6k (volume was huge so this mean there was a lot of buyers in this area, this is a good support). I personally think we will go visit the 4.5k zone before the start of a new bull cycle.
Stay tuned for more updates,
Fred
