Approaching a critical level
Updated
Bitcoin is now approaching a critical level.
Bitcoin went through multiple resistance levels already but the next one is a big historical level where we will see a lot of volume.
As you can see on the chart, BTC is approaching the 50DAY moving average which will also match the 11.5K resistance. The 11.5K also represent a .5 Fib level back from the 2900 level (5/2017) and the .382 fib level from 19K to the recent 6K low.
I expected some sideways movement and a short term pull back to 10800.
From there 2 scenarios:
1. Bearish: If the price break down and close below the 10600, we will retest the 10K resistance where at this point we will meet with the 5DAY MA
2. Bullish: the short pull back will find aggressive buyers that wants to see the price break the 11.5K and we should reach the major trend line around 12K.
Big zone to watch closely, set your stop loss correctly to protect yourself against losses (unless you're hodling).
In my opinion, we have a 60% for scenario 2 and 40% for scenario 1 but we never know, it's Bitcoin after all.
Bitcoin went through multiple resistance levels already but the next one is a big historical level where we will see a lot of volume.
As you can see on the chart, BTC is approaching the 50DAY moving average which will also match the 11.5K resistance. The 11.5K also represent a .5 Fib level back from the 2900 level (5/2017) and the .382 fib level from 19K to the recent 6K low.
I expected some sideways movement and a short term pull back to 10800.
From there 2 scenarios:
1. Bearish: If the price break down and close below the 10600, we will retest the 10K resistance where at this point we will meet with the 5DAY MA
2. Bullish: the short pull back will find aggressive buyers that wants to see the price break the 11.5K and we should reach the major trend line around 12K.
Big zone to watch closely, set your stop loss correctly to protect yourself against losses (unless you're hodling).
In my opinion, we have a 60% for scenario 2 and 40% for scenario 1 but we never know, it's Bitcoin after all.
Note
Got the pullback to 10.8K. it didn't hold obviously, I see a next stop at the 10K level where trades will have to be reviewed. We need to be aware of the up trend as well formed from the 6k level (white line) where price can bounce off and make a higher high.
Note
BTC did bounce back on the white trend line from the 6K level. nothing is sure yet, we are neither bullish or bearish and it is still a no trade zone for me.
As you can see on this screenshot, we have multiple scenario.
BTC is dangerously approaching the 50day MA and the major trend line correction. where we will see another wave of big volume and it'll trade sideways.
Should we break the 50 DMA and the major trend line, BTC could skyrocket to the 13, 15K.
Should we break down the white trend line, BTC would retest 10K and 2 other scenarios could unfold from there (Purple and red).
Note
retest of the 5DMA. Should this break down we would retest 10K level. If 5DMA holds, we will be testing the major resistance and 50DMA again.Note
50DMA became strong résistance
5DMA broke down and is now a strong resistance as we can see on the screenshot above
We test the 10K level as expected
But in my opinion, the downward momentum is too strong, we might see a short term rebond before breaking lower and flirting with the VWAP from 2/6 6K low.
I see a short opportunity if BTC does something like the green line (short rebound from 10k and another dip down) I drew right below the 10k level.
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