Bitcoin Daily Chart Analysis
- Now taking a look at Bitcoin's daily chart , we can see that the current corrective trend we're looking at (arrow D, orange), is very similar to the previous corrective trend (arrow B, red) in many ways.
- Both moves demonstrated a dead cat bounce, and a huge bearish engulfing candle that left a huge downward wick
- So using the technical symmetry theory, we can conclude that a move down to $37.8k is probable.
- This level also aligns with the Fibonacci retracement support of 0.786
- In the previous correction, we also saw Bitcoin bottom out at the 0.786 Fibonacci retracement level, and accumulate as the price ranged between the 0.786 support and the 0.618 resistance.
- As for this short term downtrend, I expect something similar to happen in terms of the price action.
- If we were to break through $61k with strong momentum, and close above those levels on the daily, this scenario would be negated, and we would immediately resume to the bull rally.
- Now taking a look at Bitcoin's daily chart , we can see that the current corrective trend we're looking at (arrow D, orange), is very similar to the previous corrective trend (arrow B, red) in many ways.
- Both moves demonstrated a dead cat bounce, and a huge bearish engulfing candle that left a huge downward wick
- So using the technical symmetry theory, we can conclude that a move down to $37.8k is probable.
- This level also aligns with the Fibonacci retracement support of 0.786
- In the previous correction, we also saw Bitcoin bottom out at the 0.786 Fibonacci retracement level, and accumulate as the price ranged between the 0.786 support and the 0.618 resistance.
- As for this short term downtrend, I expect something similar to happen in terms of the price action.
- If we were to break through $61k with strong momentum, and close above those levels on the daily, this scenario would be negated, and we would immediately resume to the bull rally.