Bitcoin has reached the intersection of two key support levels (the white horizontal zone and the blue trendline), so we expect a price reversal from this area.
However, there are a few important points to consider:
Further Explanation on the Second Point (Bearish Scenario):
The correction before the downtrend continuation could play out in two ways:
I lean more toward the bearish scenario because:
However, there are a few important points to consider:
- Even if the trend reverses upward from here, there’s a chance that price could briefly dip below this zone to sweep stop losses before reversing. Don’t rush into trades—wait for confirmation.
- In my view, the trend won’t reverse from here. Bitcoin might only see a minor correction (around a 38% Fibonacci retracement of the previous wave) before resuming its downtrend. This makes buying risky and requires high trading experience for entry.
Further Explanation on the Second Point (Bearish Scenario):
The correction before the downtrend continuation could play out in two ways:
- First: Price corrects before breaking this key support zone, then drops further.
- Second: Price first breaks below this zone, then pulls back to retest it before continuing its decline.
I lean more toward the bearish scenario because:
- Market sentiment is currently risk-off.
- The S&P 500 chart also suggests a correction is needed before the downtrend continues.
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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.
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.