Testing Support Levels following 50/200 Week SMA CrossI like to consider bullish and bearish scenarios, this outlook would be bearish for at least a couple of months, or even into fall of this year before returning to bullish again. Pre-requisite is losing a daily support area between 36.5-40k
This is the 2nd time the 50/200 week SMA has crossed. The first time was a little under a year ago around early to mid-February of last year.
Crosses like this, whether bearish or bullish, often get tested, as it did when it saw the 50/200 week SMA death cross last February. We tested it, initially held below the 50 week, and then broke above both the 50 and 200 week SMA before riding along the 200 SMA and finally moving well above; causing the Golden Cross we are seeing now.
There could be a possibility that we see another test of the 50/200 SMA following this new crossing, which lies around center of support.
Hold support and the crossing to remain bullish above 30k.
Lose support and the crossing and we might see a double bottom around ~15.5-17-5k instead. This would also be a re-test of the top of the channel drawn on the chart.
A related older bullish channel break idea is linked in related ideas below.
