BTC is having a hard time with major resistance at the low 8k area, where multiple areas of resistance intersect.
Former areas of support that have now turned into resistance:
-The bottom of the downtrend since 19k that was touched at 10.7k and 9-9.5k. (thin blue line)
-The often-mentioned long term support for the previous uptrend (not shown)
Current areas of resistance:
-The thick pink line of resistance from the current downtrend we have been in since 17k has been extremely resistive. The only time BTC managed to stay above it for a prolonged amount of time was during the Tether bull trap caused by people moving funds out of USDT exchanges, which drove prices up.
-The thin purple line of resistance from the downtrend we've been in since the 12k bull trap.
Volume during falls has been increasing, while overall volume is decreasing, indicating bulls aren't showing up. Sentiment on forums is beginning to turn negative, a shift from the celebration during the rebound.
Therefore, I expect BTC to be rejected by the resistance and continue its trek downward. Since the time spent consolidating after each fall has been rapidly decreasing, I expect a retest of 6k before the end of the week.
Our next target if 6k is broken is about 5.5k, where the bottom of the downtrend since 17k is (thick blue line) as well as the 50 week MA.
Former areas of support that have now turned into resistance:
-The bottom of the downtrend since 19k that was touched at 10.7k and 9-9.5k. (thin blue line)
-The often-mentioned long term support for the previous uptrend (not shown)
Current areas of resistance:
-The thick pink line of resistance from the current downtrend we have been in since 17k has been extremely resistive. The only time BTC managed to stay above it for a prolonged amount of time was during the Tether bull trap caused by people moving funds out of USDT exchanges, which drove prices up.
-The thin purple line of resistance from the downtrend we've been in since the 12k bull trap.
Volume during falls has been increasing, while overall volume is decreasing, indicating bulls aren't showing up. Sentiment on forums is beginning to turn negative, a shift from the celebration during the rebound.
Therefore, I expect BTC to be rejected by the resistance and continue its trek downward. Since the time spent consolidating after each fall has been rapidly decreasing, I expect a retest of 6k before the end of the week.
Our next target if 6k is broken is about 5.5k, where the bottom of the downtrend since 17k is (thick blue line) as well as the 50 week MA.