Bitcoin Key Resistance & Support Levels And Possible Path Ahead
Updated
When the trading is choppy, it is wise to know the key levels and what could happen. Being informed and ready will help you not to panic and also make you understand what is happening in the market.
Bitcoin has lots of resistance around 20 EMA on Daily Chart. So in the coming days it will move toward that level and if rejected it will come down to the Support 1 which is 300 EMA on the daily chart. It will again move up to test the 20 EMA and it will fail and make a triple top which is a bearish reversal and it will fall to 1200 EMA.
Also monitor the RSI on daily charts as we have resistance around 47 - 50. It will also make a triple top on the daily RSI.
So here is my Prediction:
1. Moves up to 20 EMA and gets rejected
2. Support at 300 EMA
3. Move up again to 20 EMA and gets rejected. (it will also make a triple top bearish reversal pattern here)
4. Goes down to 300 EMA support and also the death cross will happen around this time.
5. Then on panic selling, it falls to 1200 EMA.
If it is able to clear the 20 EMA, then you can go long for the 50 EMA level which is around 9400 and it will be rejected there for sure as per the present market conditions. Go long only after getting enough confirmation. There could be false breakouts.
But due to the fear of an impending death cross, it is not likely that the bulls will be able to do much.
If the 300 EMA support levels are broken on the daily chart, then it will be fall to the 1200 EMA (3800 - 4000) which is the best place to stock up on Bitcoins. From the 1200 EMA fall it will move up to the mean of 300 EMA and will start the life all over again for the next Superstock Rally which will take 2-3 years :)
Bitcoin has lots of resistance around 20 EMA on Daily Chart. So in the coming days it will move toward that level and if rejected it will come down to the Support 1 which is 300 EMA on the daily chart. It will again move up to test the 20 EMA and it will fail and make a triple top which is a bearish reversal and it will fall to 1200 EMA.
Also monitor the RSI on daily charts as we have resistance around 47 - 50. It will also make a triple top on the daily RSI.
So here is my Prediction:
1. Moves up to 20 EMA and gets rejected
2. Support at 300 EMA
3. Move up again to 20 EMA and gets rejected. (it will also make a triple top bearish reversal pattern here)
4. Goes down to 300 EMA support and also the death cross will happen around this time.
5. Then on panic selling, it falls to 1200 EMA.
If it is able to clear the 20 EMA, then you can go long for the 50 EMA level which is around 9400 and it will be rejected there for sure as per the present market conditions. Go long only after getting enough confirmation. There could be false breakouts.
But due to the fear of an impending death cross, it is not likely that the bulls will be able to do much.
If the 300 EMA support levels are broken on the daily chart, then it will be fall to the 1200 EMA (3800 - 4000) which is the best place to stock up on Bitcoins. From the 1200 EMA fall it will move up to the mean of 300 EMA and will start the life all over again for the next Superstock Rally which will take 2-3 years :)
Note
One more thing I forgot to mention is by the time we reach to the step 3, all these EMA will be converging at that point and also we will come to end of the triangle. The death cross will be very close and due to the fear of this we will not have an upside breakout.
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