My Short Bullish Bitcoin Market Analysis!Hello everyone!
This is my first short (Bullish) Bitcoin market analysis.
(I think everyone has heard about the "6th theory", it's a bit based on that)
My scenario:
Bitcoin will go down to 7,200$ levels, where we can find the support. After that we will see a huge jump up to 8,100-8,200$ levels (Fib 0.786). We will face some resistance there, so I expect is to retrace a bit down to 7,700-7,800$ levels. As you can see, I have drawn a green trend line there, that indicate a support.
I'm basing that support line on the previous support line, which is at the same level. If we look back to the last BTC pump, we can see that we went up, tried to break it, and after a day we broke it and held that level. From there we went up. We actually tested that support level for about 2-3 times.
(That's what I'm basing the green support level on)
So when we bounce from it, we will break the 8,100$-8,200$ levels (0.786 fib) and go up to the next Fib level, which is at around 8,500$ (0.618 Fib).
That's another resistance level which I think with this sentiment, we will be able to pow through it and go up to the 8,800$ (0.5 Fib) but then go down, possibly retest the 0.786 level or if there's volume maybe, just maybe even 8,500$ (0.618 Fib).
Now, here is my logic which we should remember:
1) The 6th theory. Basically, the theory goes that on every 6th of every months the way Bitcoin goes (up or down) changes. If this is true, then we should see a spike, up.
2) If we go down to lower 7K$ levels, it's good. Why? Because if we start from there, we will start "fresh". That's a big support line now for Bitcoin, and from there up (lower 7K$ levels) we will go up with more strength and better sentiment.
3) The MACD is high and it needs to come down, that's why I think we will go down to lower 7K$ levels, and we have seen BTC's RSI also that low, so that's not a problem. Which will mean more buy power and again, stronger push.
(Low RSI, Stoch RSI and MACD)
4) We are making lower lows. Notice how the low few months ago was just below 6,000$ level then 6,400$ and now around 7,000$. this means we are going up slowly but surely and are building up a good base. And so I think it's not that likely that we go below 7,000$.
Or we might not go back to lower 7K$ levels and just from this mid 7K$ level go up, which is also a possibility but I prefer that we do go back to lower 7K$ levels. Then we would have a better base and more momentum.
Thanks for reading my technical analysis, hope you enjoyed. BITCOIN
