BTC Fake Break Down or a New Downtrend in marketHello Traders,
Weekly close was more of a Downtrend Depletion with a Doji being formed on our charts. However, as we see it now, we are currently looking at a weekly opening which could end up creating quite a lot of Panic in our trading community. We have already gone below our last week's Low and the week just started.
Although we would want to believe that its just a Fake out, other technical Indicators like RSI, MACD, AWESOME OSCILLATORS might not support that theory.
As of this moment, we at ChainAssets.Capital see this as a possible Fake Breakdown, to overthrow the small Retail Investors. However, Trading has always been a game of probability, thus it is more safe to assume that it is not a fake breakdown but market is actually losing its value.
We would like to speak levels now. As per the current scenario, if we manage to stay above $35k, we might see some sort of Support from our Major TrendLine on Weekly (which is also a good support for our supposed isosceles triangle). However, if we see that our support at $35k gets broken, we might wanna start looking for Shorts from here on out, because in that case, we will starting a new Downtrend in which all our previous Horizontal and Diagonal Support levels will fail.
We estimate that if the market keeps on Dropping, we might see some rather bold Levels in Market all over again. $10k being a possible target of BTC, Alt Coins might face more consequences.
Though only one possible scenario suggests the probability, it is still a good chance. Although we will see some sort of support at our previous key levels like that of $29k, and $19k - $23k ranges, we aren't too sure about them being held when the whole of our Market will be panicking.
It is even possible for Market to stoop at the mentioned levels at a much faster rate than we expect.
Please use Stop Losses in all conditions, be it Futures or Spot. No one can really tell if the market is going to fall or not. However, it is safe to assume that it is going to even if your technicals say otherwise.
Positive Side:
although the first scenario has been negative of our general Idea on Market, there are three other scenarios in which Market might get support from here.
AS per price action, we simply reached an end for down wave and the evident marker for that is last week's Doji. If we manage to, somehow, get above the high of Last week's Doji, there are simply unlimited possibilities after that. But market has never been that easy to read, so still keep your Stops below Last Week's Doji's Low.
There's also a possibility of getting a support at $29k to $32k range as well, in which case, Market might give us a really good pullback till $35k to $39k range, but not beyond that since, it will be the beginning of a rather long Consolidation period. But hey, consolidation period isn't all that bad, you can still expect to play horizontal Support and Resistance to go Long and Short and still benefit from the market.
We were however, seriously hoping to achieve new highs in the coming months of June and July. But that's Crypto for you, it gets heavily affected by how the world experiences its events.
DISCLAIMER : we simply project our ideas in our public analysis, and this should not be treated as a trading Call. Our analysis is also not written in that sense. The only reason we share these ideas is to get other's suggestion on what they think and how we all can improvise using each other's inputs. For trading, use your own analysis and never depend on someone else's analysis!
