The sentiments across board seems to be pretty bearish with more shorts piling up every minute.
Before you join the herds, i will advice you take a closer look at BTC chart on higher time frame.
On the weekly we saw a move up to a swing high of 9100 followed by a correction to 7450 where we had a strong bounce and a parabolic rise to our local top at 0.618 retracement level of 13900 area.
In a bullish market, its normal to see a bullish retest of previous swing high formally acting as resistance but now flip into support, followed by a period of consolidation, and then a continuation of the trend.
The correction from our local top of 13900 (0.618 fib level) down to the previous swing high (prevoius resistance now turned support) at 9100 to me is pretty bullish.
We did not just touched that support level, we also had a double bottom at this support level (which is also a bullish reversal pattern), and closed just near the 0.382 fib level of the macro trend.
Price has since then be trading withing the bullish pennant with series of higher low and lower high formations, and presently finding support at a confluence of the 0.382 fib retracement and the trend line support of the bullish pennant.
This to me is a bullish set-up for a bullish breakout of the pennant if this confluence holds and we get a bounce from this level.
However, this week will be the decider,with the BAT pattern formation presently showing up on the daily (in the event that we dont break below 9350 for this pattern to remain valid as ealier stated), if the bulls step up their game and more buyers step in at this level of support and we get a strong bounce to push price back up to ultimately form a hammer at the close of the weekly candle, then we could see a bullish reversal and a break to the upside from next week.
On the flip side, market makers could break price below the pennant to create a panic and shake out weak hands.
In this case, we should be prepared for a retest of the previous low, and a possible break down to 8500 to fill the futures gap in the event that the 21 week EMA at 9350 fails to hold.
So long as BTC remains within the pennant, we are still very much bullish, and i expect the 21 week EMA at 9350 and the previous swing high now acting as support at 9100 to give us a nice amount of support this week IMO.
Before you join the herds, i will advice you take a closer look at BTC chart on higher time frame.
On the weekly we saw a move up to a swing high of 9100 followed by a correction to 7450 where we had a strong bounce and a parabolic rise to our local top at 0.618 retracement level of 13900 area.
In a bullish market, its normal to see a bullish retest of previous swing high formally acting as resistance but now flip into support, followed by a period of consolidation, and then a continuation of the trend.
The correction from our local top of 13900 (0.618 fib level) down to the previous swing high (prevoius resistance now turned support) at 9100 to me is pretty bullish.
We did not just touched that support level, we also had a double bottom at this support level (which is also a bullish reversal pattern), and closed just near the 0.382 fib level of the macro trend.
Price has since then be trading withing the bullish pennant with series of higher low and lower high formations, and presently finding support at a confluence of the 0.382 fib retracement and the trend line support of the bullish pennant.
This to me is a bullish set-up for a bullish breakout of the pennant if this confluence holds and we get a bounce from this level.
However, this week will be the decider,with the BAT pattern formation presently showing up on the daily (in the event that we dont break below 9350 for this pattern to remain valid as ealier stated), if the bulls step up their game and more buyers step in at this level of support and we get a strong bounce to push price back up to ultimately form a hammer at the close of the weekly candle, then we could see a bullish reversal and a break to the upside from next week.
On the flip side, market makers could break price below the pennant to create a panic and shake out weak hands.
In this case, we should be prepared for a retest of the previous low, and a possible break down to 8500 to fill the futures gap in the event that the 21 week EMA at 9350 fails to hold.
So long as BTC remains within the pennant, we are still very much bullish, and i expect the 21 week EMA at 9350 and the previous swing high now acting as support at 9100 to give us a nice amount of support this week IMO.
