Bitcoin did the unthinkable. It broke a key support level at $50k and as of today we painted a LOWER LOW! We also activated the bearish scenario, check my previous BTC idea on that, linked below.
This is very bearish and especially on increasing volume on this way down. You don't want to see increased volume on a dump because that is the worst kind of bearish pattern.
Therefore, the most likely scenario at this point is that we will have continuation in this correction and we will likely stop only when we pass -30% and price finds support somewhere in the low $40k zone which should provide strong support.
Long term I remain bullish so long we maintain price above $40k which is also a great buy opportunity if you are bullish long term and treat this as a correction. Buy orders between $44k and $40k are recommended as we do not know where price will stop its descend.
However, if that level does not stop price from falling, then I'll turn bearish overall.
Possible paths on the chart. Unlikely buyers will step in now when they know they can get a better discount lower. Hence, best to let this formation play out. Of worth, we also broke the rally trendline we formed since October 2020. So there is not much to hold price going lower, apart from the 100 day moving average that seems to hold price right now. Don't think it will last.
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This is very bearish and especially on increasing volume on this way down. You don't want to see increased volume on a dump because that is the worst kind of bearish pattern.
Therefore, the most likely scenario at this point is that we will have continuation in this correction and we will likely stop only when we pass -30% and price finds support somewhere in the low $40k zone which should provide strong support.
Long term I remain bullish so long we maintain price above $40k which is also a great buy opportunity if you are bullish long term and treat this as a correction. Buy orders between $44k and $40k are recommended as we do not know where price will stop its descend.
However, if that level does not stop price from falling, then I'll turn bearish overall.
Possible paths on the chart. Unlikely buyers will step in now when they know they can get a better discount lower. Hence, best to let this formation play out. Of worth, we also broke the rally trendline we formed since October 2020. So there is not much to hold price going lower, apart from the 100 day moving average that seems to hold price right now. Don't think it will last.
Like and follow if you liked this idea! Also join my crypto community to stay in touch!
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