Given the massive depreciation of Bitcoin against the USD, it is time to think long-term and hard about where the journey is headed. Bitcoin is still in its downtrend. For five waves (1-5), it went down between the green support line and the red resistance line of the channel. On February 27, 2018, it changed the channel and is heading South between the red support line and blue resistance line of the new down channel.
BTCUSD is approaching two very interesting levels where an important decision on the further direction of the Bitcoin’s price is being demanded. The two levels are 6000 and 5511. Both levels are strong support levels. These support levels will not be broken easily. The Pivot system levels are close together. This is another indication that Bulls and Bears are fighting for the future direction of the Bitcoin price.
Trend Reversal Scenario
The trend reversal scenario occurs when a double bottom forms in the chart. This requires a low between the current low and the low of February 6, 2018, which was 6000. Such a double bottom confirms once it breaks the ceiling at the 11700 level. Breaking the 11700 level would set a minimum target of 17225.
Be careful, it is very likely to see a bull trap at the level of 6000.
Trend Continuation Scenario
If the Bitcoin rate breaks the level of 6000 US-Dollars to the downside, the double bottom scenario is no longer valid. Once the 6000 level is sustainably broken, BTC will head down to the 5511 level, which is an intermediate target. This level is a strong support and it will take some time until Bitcoin will be able to break it.
In my opinion, it is more likely to see a further downmove of Bitcoin, as there are no fundamental facts that would suggest an uptrend.
Happy Easter Days!
BTCUSD is approaching two very interesting levels where an important decision on the further direction of the Bitcoin’s price is being demanded. The two levels are 6000 and 5511. Both levels are strong support levels. These support levels will not be broken easily. The Pivot system levels are close together. This is another indication that Bulls and Bears are fighting for the future direction of the Bitcoin price.
Trend Reversal Scenario
The trend reversal scenario occurs when a double bottom forms in the chart. This requires a low between the current low and the low of February 6, 2018, which was 6000. Such a double bottom confirms once it breaks the ceiling at the 11700 level. Breaking the 11700 level would set a minimum target of 17225.
Be careful, it is very likely to see a bull trap at the level of 6000.
Trend Continuation Scenario
If the Bitcoin rate breaks the level of 6000 US-Dollars to the downside, the double bottom scenario is no longer valid. Once the 6000 level is sustainably broken, BTC will head down to the 5511 level, which is an intermediate target. This level is a strong support and it will take some time until Bitcoin will be able to break it.
In my opinion, it is more likely to see a further downmove of Bitcoin, as there are no fundamental facts that would suggest an uptrend.
Happy Easter Days!
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Here I zoomed into the chart for highlighting the Pivot system. BTC just started another downmove.
