The resistance is strong
Updated
We have been in a falling wedge since June, but there is another line segmenting the pattern which has proven to offer good support multiple times previously... and now it has proven for the third time to also work as strong resistance.
My prediction from here? BTC will go back down to the Fib golden retracement level, which near enough coincides with the $7000 psychological level; then potentially further back down to $6500 and eventually back to the weekly 200 Moving Average around $5000.
This is incredibly positive for crypto because we know 90% of altcoins are either scams or incapable of delivering on what they promised and are rapidly running out of funds. Meanwhile the money in crypto is being dispersed between too many projects. A drop down to 5k (or even better, back to 3k) would help kill off the altcoins that are actually worthless and help concentrate where in crypto the investment should go (i.e. working projects, or at least those that follow the Lindy Effect). Essentially we need to stress test the crypto world and the sooner the better.
Please give me a thumbs up and follow me if you found my analysis interesting. This is for educational purposes only and not a recommendation to buy or sell.
Save crucial space on your Trading View chart by utilising the free RSI and StochRSI indicator which overlays both in a clear and helpful fashion.
My prediction from here? BTC will go back down to the Fib golden retracement level, which near enough coincides with the $7000 psychological level; then potentially further back down to $6500 and eventually back to the weekly 200 Moving Average around $5000.
This is incredibly positive for crypto because we know 90% of altcoins are either scams or incapable of delivering on what they promised and are rapidly running out of funds. Meanwhile the money in crypto is being dispersed between too many projects. A drop down to 5k (or even better, back to 3k) would help kill off the altcoins that are actually worthless and help concentrate where in crypto the investment should go (i.e. working projects, or at least those that follow the Lindy Effect). Essentially we need to stress test the crypto world and the sooner the better.
Please give me a thumbs up and follow me if you found my analysis interesting. This is for educational purposes only and not a recommendation to buy or sell.
Save crucial space on your Trading View chart by utilising the free RSI and StochRSI indicator which overlays both in a clear and helpful fashion.
Note
Comment: Why view the RSI and Stochastic RSI in separate indicators, when it can be in one...
Note
Free to use indicator combining all important time periods for two of the most valuable trading tools: EMAs and SMAs. (EMA 21/55/89/200 & SMA 50/100/200)
Trade closed: stop reached
And thus the support was brokenTrade active
And just like that, after a short period of support, we’ve fallen back through and there are early signs this line will be providing resistance once again.Note
The trendline (which aligns with the 4 hour 21 EMA) is still holding strong. I feel the bears are in control here and we'll soon be back in the 6k zone.
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