Unlikely...... but BTC historically loves the .786!!!

Updated

Don’t really see how the news today justified every man and his dog jumping into sell mode again, but as usual it’s not all what it appears to be.

We’ve dropped below all the areas we identified in previous post, and now approaching the bulls last line of defence if the ‘impulsive 1st wave’ retracement argument is to remain intact.

We’ve dropped below the .618 now and really there isn’t much left to act as support below the .786

However.... historically BTC does LOVE the .786 Fib levels and with almost every indicator showing oversold right now, a final drop down to the .786 around the $6360 region +/-

We’ll see how it all turns our shortly.... but there’s a huge amount of shorts accumulating here that are over leveraged and under capitalised... and that smells pretty rotten to me, you really have to be careful shorting in these areas.

Trade safe folks.

The Colonel xxx

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Very aggressive selling absorbed by some very large buy orders just now at the 6360! On the dot.... checking the smaller timeframes. Looking good at the 786 but long way to go, early signs show very strong support right there

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As you can see, down to the smallest time frame. Price hits 6360 in an aggressive move and instantly hits sizeable buy orders rebounding to 6460 in seconds. This is interesting to watch. Give us a like & follow along

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Long way off yet and just an idea right now, but if .786 holds and we see impulsive volume to come, this count is still valid and we would be looking at a 1:1.618 ext target of around 10790. Just an idea right now, no confirmations yet and def not trade advice.

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On the hourly chart we see a really perfect example of a tweezer bottom and 2 very strong, high volume rejections off the .786 ($6360 region)

Bearing in mind that although one of those candles is red, most of that volume is buyside pressure defending the .786

From here expect some sideways action before a break, and I think it will be a big one personally

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Yet another bullish rejection on the last hourly candle. Keeps testing this .786 zone but there seems to be a very strong demand zone there for now. (You can see these long wicks and retracement indicating strong buy orders below) We need to see some more continuation of volume from here to make any significant move to the upside. Any move to the upsidefrom here will need to be significant as there is so much bearish sentiment and thirsty short-sellers waiting to pounce.

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Smashed through the .786

Unusually quite a lot of sellers being absorbed here, keeping a close eye as we could just be wiping out weak hands and long wick back up. Never count it out!

6080 next blocker on the way down - then 5850

Below that... ouch! Stay safe guys and remember, whatever you think the market will do in any given moment

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4hr candle has almost retraced all the way back to the .786 - with about 16 mins to go on this candle.

Could get rejected hard (previous support now becoming resistance)

Or if it makes it back above and closes, that is one seriously bullish candle I have to say it would be looking strong in that case.

Daily also has a lovely long wick to the downside, which is considered quite a strong indication of a reversal.

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Very interesting developments here. Daily chart is very oversold - in fact, the last time we were this oversold, bitcoin had a lovely rally in the weeks afterwards.

4hr hugely oversold.

Watching and waiting patiently for our triggers to execute next trade.

ColonelCrypto

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