How far can BTC
fall? That's the question I've been asked a lot in the last few days and it's very tough question to answer on pure technical analyses, because there's a lot of (negative) fundamentals driving the price down these days. There's pretty obvious it has broken it's long term uptrend support line, so now it's techically in a downtrend. If there's no further negative rumors, speculations and news, I expect ti to bounce off one of the important levels. First is the .618 Fibonacci level at around 3030USD, which is known as whale's favorite level, to re-enter the market. If that doesn't hold, next possible bounce-off could be the resistance line, that held for quite a long in July and August. It could act as a strong support now. Even lower is the .786 Fibonacci at around 2500 USD, but in case there's no more negative news comig, I doubt it can fall this far. If we tako a look at RSI
it signals oversold condition already, so it's hard to believe it will stay in that condition without attracting buyers for long enough, to let BTC
fall that low.
One should be looking for a long red daily candle witha above average volume
, followed by a long green daily candle with above average volume
, forming around one of these levels. This would be a strong long term bullish
signal and good long term entry point.
Of course these are just my opinions, not trading advice. I'm not a professional trader or financial advisor, and can't be held responsible for potential loss one can make based on my opinions.