This chart is the weekly support.
Bitcoin weekly support has been respected as both one of the strongest supports and resistance levels (together with the weekly long term moving averages).
In this chart we can see the logarithmic price establishing a support band between COVID and September 2020 correction.
When this band hold, 100% of the time there's a strong rally.
When this band doesn't, 100% of the time the weekly trend flips.
We MUST hold this band of support, that means this weekly candle and next weeks must always CLOSE above.
Closing below could cause a real blood bath.
We need to continue to monitor these levels. Ideally we want to close above 51-52K.
Closing below 48K the week wouldn't look that bad on the daily chart, but on the weekly it would look really bad.
As much as I'm bullish on crypto and bitcoin, we need to consider ALL possible scenarios to avoid biased as much as possible.
We haven't had any dead cat bounce yet. No signs of a potential V recovery. It's been pretty much very negative.
Cause: earlier this week there was a pretty big cascade of liquidations. Billions. These type of events never go unattended, it scares investors. Unfortunately it happened not at the very top 69K which would have been easier to tolerate, but it started from just above 51...which made it extra painful.
Bitcoin weekly support has been respected as both one of the strongest supports and resistance levels (together with the weekly long term moving averages).
In this chart we can see the logarithmic price establishing a support band between COVID and September 2020 correction.
When this band hold, 100% of the time there's a strong rally.
When this band doesn't, 100% of the time the weekly trend flips.
We MUST hold this band of support, that means this weekly candle and next weeks must always CLOSE above.
Closing below could cause a real blood bath.
We need to continue to monitor these levels. Ideally we want to close above 51-52K.
Closing below 48K the week wouldn't look that bad on the daily chart, but on the weekly it would look really bad.
As much as I'm bullish on crypto and bitcoin, we need to consider ALL possible scenarios to avoid biased as much as possible.
We haven't had any dead cat bounce yet. No signs of a potential V recovery. It's been pretty much very negative.
Cause: earlier this week there was a pretty big cascade of liquidations. Billions. These type of events never go unattended, it scares investors. Unfortunately it happened not at the very top 69K which would have been easier to tolerate, but it started from just above 51...which made it extra painful.
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