Bitcoin - Correction Levels To Watch
Updated
Whats up traders,
Here we have BTC/USD on the 4H chart.
Price recently broke a long term side-wards resistance structure at around 13600. Since then price broke structure and rallied to upside. In the short term, it looks like price is going to correct.
At this present moment, there is 2 major levels I have in mind for BTC/USD for a correction. We would prefer see the correction higher as this increases the likelihood of the up trend continuing.
The correction levels I am expecting price to hit are:
-14100. This is the sideways resistance level turned support. A retest on this level would confirm the long term uptrend resistance is broken and not Bitcoin can trade freely without structure restrictions.
-12080. This is the last major structure support that Bitcoin had. This level is a strong support and would likely catch Bitcoin even if the down move was aggressive.
I am expecting price to correct at previous sideways resistance turned support at 14100, although both scenarios above are equally valid, and likely to happen.
In terms of preference, having price correct to 14100 is preferred. This is a shallow correction but tests a major structure, so we want to see this happen. If price breaks this level it could show first cracks in Bitcoins uptrend. Also, if price corrects to the previous support zone at 12080, the correction will be considered steep and buying to the upside after may lack momentum and the price will definitely not have as much kick as it has in recent times, due to fear.
I have also tagged my other recent Cryptocurrency ideas in the related ideas. See the related ideas at the bottom of this post. Please give all my content a like as it motivates me to continue posting.
I will be updating this analysis as it progresses.
Here we have BTC/USD on the 4H chart.
Price recently broke a long term side-wards resistance structure at around 13600. Since then price broke structure and rallied to upside. In the short term, it looks like price is going to correct.
At this present moment, there is 2 major levels I have in mind for BTC/USD for a correction. We would prefer see the correction higher as this increases the likelihood of the up trend continuing.
The correction levels I am expecting price to hit are:
-14100. This is the sideways resistance level turned support. A retest on this level would confirm the long term uptrend resistance is broken and not Bitcoin can trade freely without structure restrictions.
-12080. This is the last major structure support that Bitcoin had. This level is a strong support and would likely catch Bitcoin even if the down move was aggressive.
I am expecting price to correct at previous sideways resistance turned support at 14100, although both scenarios above are equally valid, and likely to happen.
In terms of preference, having price correct to 14100 is preferred. This is a shallow correction but tests a major structure, so we want to see this happen. If price breaks this level it could show first cracks in Bitcoins uptrend. Also, if price corrects to the previous support zone at 12080, the correction will be considered steep and buying to the upside after may lack momentum and the price will definitely not have as much kick as it has in recent times, due to fear.
I have also tagged my other recent Cryptocurrency ideas in the related ideas. See the related ideas at the bottom of this post. Please give all my content a like as it motivates me to continue posting.
I will be updating this analysis as it progresses.
Note
After analyzing the 1H chart, there have been developments.When viewing the chart, I noticed price appears to have bounced successfully at our first predicted support level at 14080. When price hit this level, there have been multiple bullish reversal candles, and there appears to have been some more upside.
This could be the correction we was waiting for, and we could now see the up move to the longer term target of 18950.
Bare in mind that price could retest the 14080 corrective level once again before the up move. So remember this before considering a position.
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