Hello traders,
If you recall from my analysis, I mentioned the possibility of Bitcoin losing momentum since $3900, and finally we had healthy corrections.
Looking at the daily chart, we see that Bitcoin is trying to find support at green box region as we saw strong resistance in early December. This also corresponds to 50% fibonacci level as well so I expect some buyers from here.
There are 2 possibilities in the upcoming few days:
1) Bearish view
Technical speaking, Bitcoin is still in the bear trend and it is highly possible to form bearish equilibrium before it makes the decision. Therefore, we may see another drop down to $3550 if the green box support is breached.
2) Bullish view:
There may be an inverse head and shoulders pattern taking a place if Bitcoin find support at $3650. We will probably see tightening equilibrium to form in next few days or so. This orange trendline will be key resistance to break in order to have next rally. In case of breakout, there is not much resistance before we hit $5400 so that should be the next target.
Happy trading and Merry Christmas!
If you recall from my analysis, I mentioned the possibility of Bitcoin losing momentum since $3900, and finally we had healthy corrections.
Looking at the daily chart, we see that Bitcoin is trying to find support at green box region as we saw strong resistance in early December. This also corresponds to 50% fibonacci level as well so I expect some buyers from here.
There are 2 possibilities in the upcoming few days:
1) Bearish view
Technical speaking, Bitcoin is still in the bear trend and it is highly possible to form bearish equilibrium before it makes the decision. Therefore, we may see another drop down to $3550 if the green box support is breached.
2) Bullish view:
There may be an inverse head and shoulders pattern taking a place if Bitcoin find support at $3650. We will probably see tightening equilibrium to form in next few days or so. This orange trendline will be key resistance to break in order to have next rally. In case of breakout, there is not much resistance before we hit $5400 so that should be the next target.
Happy trading and Merry Christmas!
Watch for the confirmation breakout.