Bitcoin Correction Almost Finished
Updated
Present situation:
• Currently (June 6th, 07:00 UTC), Bitcoin is consolidation in a narrow range, between the 25,500 – 25, 800 USD levels acting as support and resistance. Bitcoin’s RSI is oversold on the LTF. IMO, either we finish the correction today or we may get a relief rally because bitcoin is oversold on the LTF.
Is the Correction Finished?
• IMO, BTC’s correction is almost finished, maybe even finished. These are my reasons:
1. the 25,200 USD level is a combination of diagonal support (the trendline) and a horizontal support (green line). This double support level gives me confidence that price will hold.
2. RSI on the daily TF is almost oversold. Bitcoin reacts very well to the oversold level. If we examine previous reactions to the oversold level, it is usually followed by a rally.
3. The RSI is forming a falling wedge. I expect bitcoin to respect the RSI support line and bounce.
4. should Bitcoin wick below the 25,200 USD level, the 0.5 Fib level is at 24,650 and it should provide additional support.
Can Bitcoin Dip Further?
• I don’t know; nobody does. However, I do not see reason for bitcoin to go lower than the 0.618 fib level. The whole issue with the SEC is not new and I don’t think the SEC can cause more damage than it has already done.
• The whole interest rate saga is almost over as well. Next week, on June 14th we have an interest rate decision. I expect some volatility before and after the FOMC and after that I think we are clear. My assumption is that the FED will not raise rates further.
Can BTC take off from Here?
• Possible. I think that it is the max pain scenario. Just imagine what would happen if BTC moves upward in price and leaves everyone on the sidelines.
Trade Idea No. 1:
• Entry: 25,800 (after it is tested as support)
• SL: 25,500
• TP: 26,500, 27,200, 28,300
Trade Idea No. 2:
• Entry: 25,200 (after it tested as support)
• SL: 24,600
• TP: 40,000 (TP along the way and leave some to higher levels)/
NFA
What do you think? Please share in the comments.
Best wishes to all.
• Currently (June 6th, 07:00 UTC), Bitcoin is consolidation in a narrow range, between the 25,500 – 25, 800 USD levels acting as support and resistance. Bitcoin’s RSI is oversold on the LTF. IMO, either we finish the correction today or we may get a relief rally because bitcoin is oversold on the LTF.
Is the Correction Finished?
• IMO, BTC’s correction is almost finished, maybe even finished. These are my reasons:
1. the 25,200 USD level is a combination of diagonal support (the trendline) and a horizontal support (green line). This double support level gives me confidence that price will hold.
2. RSI on the daily TF is almost oversold. Bitcoin reacts very well to the oversold level. If we examine previous reactions to the oversold level, it is usually followed by a rally.
3. The RSI is forming a falling wedge. I expect bitcoin to respect the RSI support line and bounce.
4. should Bitcoin wick below the 25,200 USD level, the 0.5 Fib level is at 24,650 and it should provide additional support.
Can Bitcoin Dip Further?
• I don’t know; nobody does. However, I do not see reason for bitcoin to go lower than the 0.618 fib level. The whole issue with the SEC is not new and I don’t think the SEC can cause more damage than it has already done.
• The whole interest rate saga is almost over as well. Next week, on June 14th we have an interest rate decision. I expect some volatility before and after the FOMC and after that I think we are clear. My assumption is that the FED will not raise rates further.
Can BTC take off from Here?
• Possible. I think that it is the max pain scenario. Just imagine what would happen if BTC moves upward in price and leaves everyone on the sidelines.
Trade Idea No. 1:
• Entry: 25,800 (after it is tested as support)
• SL: 25,500
• TP: 26,500, 27,200, 28,300
Trade Idea No. 2:
• Entry: 25,200 (after it tested as support)
• SL: 24,600
• TP: 40,000 (TP along the way and leave some to higher levels)/
NFA
What do you think? Please share in the comments.
Best wishes to all.
Trade active
If you took the trade I'm happy for you. Currently, there is a cluster of resistance between the 27,000 - 27,200.
The 100 D SMA is at 27050. The 20 D EMA is at 27,080 and the 50 D EMA is at 27,275. Local resistance on the LTF is also between 27,200- 27,360.
If we breach this level we are good for continuation to the upside. if not, next support is 26500, 25800 - 26,000.
IMO, if it dips, it's for buying, not crying.
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