The drop was unavoidable because there was a Falling wedge formation & a Bearish Divergence on both the daily and 4hr TF
Following the drop to the 0.786 fibo level, BTC recently formed a Double Bottom Structure during which some buying volume was built up (white circle) on lower TF and then it bounced back to the high confluence area (purple circle), where some retracement was expected, which is currently taking place.
The current scenario raises the following possibilities:
1.A rebound from the range 57300-56100 will validate a triple bottom structure, and we can expect an upside breakout if buying volumes increase during that period. Around 57.3k-56.8k is a POC Line (white line) and area that supports the possibility of a rebound; moreover 56100 is a good Pivotal Support region, the 0.786fibo level. All of these factors, combined with high volumes, can be interpreted as a positive sign for an upside breakout.
2.If we break below the double bottom structure we'll head straight towards 53.5k level which is the weekly TF 0.50 fibo level after which a bounce back to 56k can be expected.
STAY TUNED.
Following the drop to the 0.786 fibo level, BTC recently formed a Double Bottom Structure during which some buying volume was built up (white circle) on lower TF and then it bounced back to the high confluence area (purple circle), where some retracement was expected, which is currently taking place.
The current scenario raises the following possibilities:
1.A rebound from the range 57300-56100 will validate a triple bottom structure, and we can expect an upside breakout if buying volumes increase during that period. Around 57.3k-56.8k is a POC Line (white line) and area that supports the possibility of a rebound; moreover 56100 is a good Pivotal Support region, the 0.786fibo level. All of these factors, combined with high volumes, can be interpreted as a positive sign for an upside breakout.
2.If we break below the double bottom structure we'll head straight towards 53.5k level which is the weekly TF 0.50 fibo level after which a bounce back to 56k can be expected.
STAY TUNED.
