After a deeper analysis, I have found that in all of its previous cycles, BTC broke below the 21 EMA on the weekly chart only ONCE (in July 2013).
Looking at the weekly chart now, BTC is testing the 21 EMA again, and what history shows is that it will bounce.
I said on my last post that BTC could pullback 40% to 38k, but I overlooked this important element (the 21 EMA).
This being said, BTC just formed another hammer on the 4H chart on very high volume again (1st hammer was on the 13th of may), indicating signs of a reversal.
This could be a good spot to add to your plays, but we are in kind of in a tricky spot. If BTC closes below the 21 EMA on the weekly chart, it could go to 38-40k and bounce back, but it only happened once in all of its previous cycles, so it is hard to tell what will happen if BTC closes below that EMA.
Anyways, for now, BTC is indicating signs of a reversal with the hammer on the 4H chart, we would like to see a break and a close above 47k.
Next support is at 42k, then we have the 40 and 38k levels.
Any questions?
Good luck traders
Remember not to break your rules
Habib
Looking at the weekly chart now, BTC is testing the 21 EMA again, and what history shows is that it will bounce.
I said on my last post that BTC could pullback 40% to 38k, but I overlooked this important element (the 21 EMA).
This being said, BTC just formed another hammer on the 4H chart on very high volume again (1st hammer was on the 13th of may), indicating signs of a reversal.
This could be a good spot to add to your plays, but we are in kind of in a tricky spot. If BTC closes below the 21 EMA on the weekly chart, it could go to 38-40k and bounce back, but it only happened once in all of its previous cycles, so it is hard to tell what will happen if BTC closes below that EMA.
Anyways, for now, BTC is indicating signs of a reversal with the hammer on the 4H chart, we would like to see a break and a close above 47k.
Next support is at 42k, then we have the 40 and 38k levels.
Any questions?
Good luck traders
Remember not to break your rules
Habib