I posted on my previous idea the bullish play out for BTC, but also mentioned what would happen if Bitcoin failed to break out on top. Unfortunately we saw a rejection in the resistance zone once again, and Bitcoin broke to the bottom of the flat top Ascending triangle. So what are the current and near future predictions for BTC?
As we can see in the chart above, a break below the triangle would put the price targets for BTC at around 46-45K area. However, before we see these price zones, there could potentially be some temporary support areas that we formed over the last couple of weeks. One of these areas is around the 47500 area as seen in the chart.
Since Bitcoin has built a floor area as seen in the chart below, marked S1, the most likely drop of this current trend should end in this area and it should also be noted that this is a golden pocket area on the FIB scale so we should see extremely strong support.
In the below chart, we can see that we have also had a break to the bottom of a critical ascending trend line which has been supporting Bitcoin since the previous dip on the 3rd December. In order for us to look for any bullish scenarios, we would HAVE to see Bitcoin reclaim its upward momentum and move back above this ascending support trend line.
As we can see in the chart above, a break below the triangle would put the price targets for BTC at around 46-45K area. However, before we see these price zones, there could potentially be some temporary support areas that we formed over the last couple of weeks. One of these areas is around the 47500 area as seen in the chart.
Since Bitcoin has built a floor area as seen in the chart below, marked S1, the most likely drop of this current trend should end in this area and it should also be noted that this is a golden pocket area on the FIB scale so we should see extremely strong support.
In the below chart, we can see that we have also had a break to the bottom of a critical ascending trend line which has been supporting Bitcoin since the previous dip on the 3rd December. In order for us to look for any bullish scenarios, we would HAVE to see Bitcoin reclaim its upward momentum and move back above this ascending support trend line.
Comment:
Whilst a lot of traders are saying the bottom is in for BTC, the LTF charts are saying different, if we look at the below chart, Bitcoin has broken the Higher High, Higher low continuation pattern and found some temporary support at the 47500 levels. If BTC is unable to move to and reclaim the higher high, then this area should be considered a relief rally in which a lower high is formed, before another move down. As i mentioned yesterday, once Bitcoin is able to push itself back above the ascending support trend line, only then can we look at bullish scenarios.
Comment:
Bitcoin failed to maintain the temporary support at 47500 and broke down to the lower price target. This means that it now has to to flip 47500 back into support before looking to higher price targets failing to flip this area into support or getting resistance here would mean another price drop.
However, the current support level is also the floor that BTC has been building since early December and is likely to hold up, failing this puts our next price target around the 42K area.
However, the current support level is also the floor that BTC has been building since early December and is likely to hold up, failing this puts our next price target around the 42K area.