It is no surprise we are pulling back now after almost doubling in price over the last 2 months and reaching the 10/11k resistance area. We will likely continue heading down for a bit. The RSI, MACD and DMI are all confirming more downward movement and we are also printing 3 black crows (the last 3 daily candles) which is a bearish pattern.
The lower time frames are pretty beat up and we might see a small bounce from around here or maybe from the 200 day SMA and if we can get above the previous resistance bulls could gain control but it does not seem too likely (First green box and arrows).
If we break below the 200 SMA there is good support around 8000/8500 and I would look for bitcoin to bounce somewhere around there and continue its up trend (the second green box).
We might see a wick down into the blue box territory but if we break below that area it is not a good sign for the bull market. Alternatively if we bounce from there and get rejected by the 200SMA and return to the blue box again it will likely break down; After which it is possible we reverse from the 6500/7000 area but if we reach there I think we will see sub $6000 prices again.
The lower time frames are pretty beat up and we might see a small bounce from around here or maybe from the 200 day SMA and if we can get above the previous resistance bulls could gain control but it does not seem too likely (First green box and arrows).
If we break below the 200 SMA there is good support around 8000/8500 and I would look for bitcoin to bounce somewhere around there and continue its up trend (the second green box).
We might see a wick down into the blue box territory but if we break below that area it is not a good sign for the bull market. Alternatively if we bounce from there and get rejected by the 200SMA and return to the blue box again it will likely break down; After which it is possible we reverse from the 6500/7000 area but if we reach there I think we will see sub $6000 prices again.
Comment:
Price action is more bearish then expected we couldn't even hold the 1st support zone (1st green box) for very long and touched the 2nd support (2nd green box) and retested the first zone again. If we can consolidate above the 200 SMA we will probably see the price move upwards but if we close below it I would expect a test of the 3rd support area (blue box).
Comment:
We could not hold above the 200 SMA and as expected are testing the 3rd support area. We will likely see a bounce from here to around the 200 SMA before heading down again unless we can close above the previous high of 9200.