Here is a quick update of my last post.
In my previous post I did warn of a weakening upward momentum and a possible resumption of the downtrend as the bulls continued to struggle to hold price above the 4000 level.
Price broke below the 4000 level, but the bulls continued to exert more strength pushing price back above the 4000 level in what appears to be a whale manipulation to liquidate short positions.
If the bulls are able to hold price above 4000 long enough, and succeed in breaking the 4200 resistance I expect a push towards the long term downtrend line resistance at 4500-4600 to complete the ABC correction move of wave 4 of the overall trend, and a possible resumption of the downtrend (wave 5).
On the flip side, if the bull strength weakens within this choppy zone, I expect a break below 4000 again, and a possible retest of previous support levels down to the 3450-3500 support level.
The 3450-3500 provides a confluence of support..... the horizontal support level and the 200 week MA. I expect a dead cat bounce at this level towards the 3700 resistance area to give us a lower high formation and a possible move down below the 200 week MA for a final shakeout that will give us our capitulation candle IMO, if the yearly low fails to hold.
Finally, I am of the opinion that this market is yet to see a bottom, that's why we haven't seen new money. Once that bottom is in, and that capitulation candle is spotted, you will see buy orders across exchanges that will cause a strong bounce out of that bottom area just as we saw in Feb 6 2018 when price first hit 6000
In my previous post I did warn of a weakening upward momentum and a possible resumption of the downtrend as the bulls continued to struggle to hold price above the 4000 level.
Price broke below the 4000 level, but the bulls continued to exert more strength pushing price back above the 4000 level in what appears to be a whale manipulation to liquidate short positions.
If the bulls are able to hold price above 4000 long enough, and succeed in breaking the 4200 resistance I expect a push towards the long term downtrend line resistance at 4500-4600 to complete the ABC correction move of wave 4 of the overall trend, and a possible resumption of the downtrend (wave 5).
On the flip side, if the bull strength weakens within this choppy zone, I expect a break below 4000 again, and a possible retest of previous support levels down to the 3450-3500 support level.
The 3450-3500 provides a confluence of support..... the horizontal support level and the 200 week MA. I expect a dead cat bounce at this level towards the 3700 resistance area to give us a lower high formation and a possible move down below the 200 week MA for a final shakeout that will give us our capitulation candle IMO, if the yearly low fails to hold.
Finally, I am of the opinion that this market is yet to see a bottom, that's why we haven't seen new money. Once that bottom is in, and that capitulation candle is spotted, you will see buy orders across exchanges that will cause a strong bounce out of that bottom area just as we saw in Feb 6 2018 when price first hit 6000
