The bullish scenario currently would be that we broke out of the large falling wedge we were in, and are now hooking back to re-test support before breaking out further. I would honestly be shocked if this happened but nonetheless it is a possibility still.
The blue dotted line is the point of control, at $2,550, the level where the largest amount of volume was traded since March 2017. Before that, the point of control was around $220, where the last absolute bottom and support for Bitcoin was before this recent bull run.
For the bullish scenario, we would first need to put in a higher low, followed by a higher high. We also need to get above the 200 day MA and stay above it. If this happens, I would feel more confident in a bullish scenario but currently I'm more bearish than bullish.
For the bearish scenario, I think we'd pull back to at least the $4,000's. At $4,200 there's a high volume node and at $4,300 we have the 0.786 fib retracement level. There is also support there that has never been tested. If that didn't hold then we'd look to somewhere in the $2,000's, where the 0.886 fib retracement ($2,400) is.
So what do you think, is this the re-test or will we continue breaking down? Feel free to comment below.
By the way, pm me if you'd like to join my trading group, it's free to join. :D
The blue dotted line is the point of control, at $2,550, the level where the largest amount of volume was traded since March 2017. Before that, the point of control was around $220, where the last absolute bottom and support for Bitcoin was before this recent bull run.
For the bullish scenario, we would first need to put in a higher low, followed by a higher high. We also need to get above the 200 day MA and stay above it. If this happens, I would feel more confident in a bullish scenario but currently I'm more bearish than bullish.
For the bearish scenario, I think we'd pull back to at least the $4,000's. At $4,200 there's a high volume node and at $4,300 we have the 0.786 fib retracement level. There is also support there that has never been tested. If that didn't hold then we'd look to somewhere in the $2,000's, where the 0.886 fib retracement ($2,400) is.
So what do you think, is this the re-test or will we continue breaking down? Feel free to comment below.
By the way, pm me if you'd like to join my trading group, it's free to join. :D
