Bitcoin - Could This be the Reversal Point?
I am hopeful that bitcoin could be at a reversal point. I am seeing a nice bounce off of the daily 50 EMA which acted as support and a reversal point during the last 2 pullbacks.
Also, this would be a beautiful bounce off of the 0.618 FIB level. I'm watching for a strong close to this daily candle and then follow through to the upside.
Also, BTC still has the 4 hour 7 ema and 200 ema just above it. First I would like to see BTC regain those two moving averages before I start believing this pullback may be coming to an end.
The measured move from the triangle that bitcoin just broke down out of is around
48K but I am hoping that the recent low will be close enough.
Even though this current pullback seems extreme, BTC is only down about 18% from the all-time high. Also, BTC just this morning finally touched the weekly 7 EMA after being extended pretty far above it for quite a while.
To illustrate just how strong this run higher has been over the last six months bitcoin has not even touched the weekly 21 EMA since September 7th. During the 2017 bull market, there were approximately six major pullbacks ranging from 30% to 40%. If bitcoin was to pullback to the weekly 21 EMA right now it would be about a 37.5% pullback so it would still be inline with pullbacks from the previous bull market. It also aligns with some major support around 38.5k. Looking at the weekly and monthly charts bitcoin still looks very healthy and I won't get too concerned until I see a weekly close below the weekly 21 EMA.
Also, this would be a beautiful bounce off of the 0.618 FIB level. I'm watching for a strong close to this daily candle and then follow through to the upside.
Also, BTC still has the 4 hour 7 ema and 200 ema just above it. First I would like to see BTC regain those two moving averages before I start believing this pullback may be coming to an end.
The measured move from the triangle that bitcoin just broke down out of is around
48K but I am hoping that the recent low will be close enough.Even though this current pullback seems extreme, BTC is only down about 18% from the all-time high. Also, BTC just this morning finally touched the weekly 7 EMA after being extended pretty far above it for quite a while.
To illustrate just how strong this run higher has been over the last six months bitcoin has not even touched the weekly 21 EMA since September 7th. During the 2017 bull market, there were approximately six major pullbacks ranging from 30% to 40%. If bitcoin was to pullback to the weekly 21 EMA right now it would be about a 37.5% pullback so it would still be inline with pullbacks from the previous bull market. It also aligns with some major support around 38.5k. Looking at the weekly and monthly charts bitcoin still looks very healthy and I won't get too concerned until I see a weekly close below the weekly 21 EMA.
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