bitcoin - A short term drop back to $6685
Updated
Bitcoin (BTCUSD) - BTCUSD seems to have found support at $6660 and is currently testing the $6800 resistance (which has held throughout most of September) so that we can go on to test $6900 - $7000. I believe once we break $6900 - $7000 resistance, price should reach $7200 - $7300 before the market turns.
The bear market IS NOT over yet! We haven't yet experienced the capitulation and consolidation which comes with the bottoming process before the start of a new bull run, and until we're back over MA200 on the daily there is no reason to believe any bull run hype just yet. So be careful while the mainstream media is busy spewing out bullish propaganda. It may go up in the short term but will probably come down even further afterwards with more momentum to break the $6000 support and potentially market structure if it does.
We actually need a break of market structure in order for the market to take direction and start a new pattern.
Everyone is saying that sentiment is too strong and Bakkt is coming online in November so this must be the start of the bull run, however, November is still a long time away in crypto, so we could potentially go much lower before price picks up leading up to the launch.
In the short term, looking at the 15 minute chart we have bearish divergence on the oscillators so we've probably reached a temporary peak at $6800 and will be retesting the channel bottom and probably going on to test $6685 at 0.318 fib using Fibonacci retracement.
From there, I suspect we will either retest channel support turned resistance at around $6700 and either go on to retest $6800 or BTCUSD will go lower from there, potentially back to $6600 support at 0.618 fib in the short term.
We will probably have a small rally in the short term but the bottom is most probably not in yet so use effective risk management and set your alerts.
Happy trading and good luck!
Previous analysis:
The bear market IS NOT over yet! We haven't yet experienced the capitulation and consolidation which comes with the bottoming process before the start of a new bull run, and until we're back over MA200 on the daily there is no reason to believe any bull run hype just yet. So be careful while the mainstream media is busy spewing out bullish propaganda. It may go up in the short term but will probably come down even further afterwards with more momentum to break the $6000 support and potentially market structure if it does.
We actually need a break of market structure in order for the market to take direction and start a new pattern.
Everyone is saying that sentiment is too strong and Bakkt is coming online in November so this must be the start of the bull run, however, November is still a long time away in crypto, so we could potentially go much lower before price picks up leading up to the launch.
In the short term, looking at the 15 minute chart we have bearish divergence on the oscillators so we've probably reached a temporary peak at $6800 and will be retesting the channel bottom and probably going on to test $6685 at 0.318 fib using Fibonacci retracement.
From there, I suspect we will either retest channel support turned resistance at around $6700 and either go on to retest $6800 or BTCUSD will go lower from there, potentially back to $6600 support at 0.618 fib in the short term.
We will probably have a small rally in the short term but the bottom is most probably not in yet so use effective risk management and set your alerts.
Happy trading and good luck!
Previous analysis:
Trade closed: target reached
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.