BTCUSD; Corrective action, watch Fibonacci levels
A downward sloping line connecting recent tops (9700) saw sellers stepping in. After leaving the short-term bullchannel and RSI converging negatively some pressure is now seen.
With bulls setting a higher low (only just at 6425 against 6400) in april their task is to do this again. If you are a believer that this coin has bottomed out against this mark you should watch signs for a higher low once again. Bottoms need to get tested and retested.
So, best to watch the Fibonacci levels in this case; 50% around 8200 and 61.8% around 7800. These are the standard correction levels. Also keep an eye on the more rare 78.6% level around 7200 should things get more nasty.
Hammerlike sessions (open, test down, close near the open again) are common in this market and could signal such a higher low. Watch such events against mentioned levels for hints of a higher low. The Bollinger Midline, around 9000 and ofcourse the mentioned downward sloping line around 9700 stand for resistance.
With bulls setting a higher low (only just at 6425 against 6400) in april their task is to do this again. If you are a believer that this coin has bottomed out against this mark you should watch signs for a higher low once again. Bottoms need to get tested and retested.
So, best to watch the Fibonacci levels in this case; 50% around 8200 and 61.8% around 7800. These are the standard correction levels. Also keep an eye on the more rare 78.6% level around 7200 should things get more nasty.
Hammerlike sessions (open, test down, close near the open again) are common in this market and could signal such a higher low. Watch such events against mentioned levels for hints of a higher low. The Bollinger Midline, around 9000 and ofcourse the mentioned downward sloping line around 9700 stand for resistance.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.