Hello all and good evening to everyone.
Let us forget about the news and world events that are going on at the moment and take a step back to look at the technical data. In my opinion it is the chart data that is the most important and contrary to popular opinion is what drives the fundamentals in the world - and not the other way around. Taking a look at our higher time frame we can see that the recent rejection came from a supply zone back in July 2019. The recent fall in price was discussed in my last update and reached a very important support/demand area from the beginning of 2019. If we are to replicate this bottoming scenario, we should/want to see volatility cooling off. That does not mean we have seen the absolute low but we can expect not to see any larger volume spikes during this coming price action. In the coming months, it would be best to see candles and volume shrinking in preparation for a larger move. This will almost certainly coincide with some positive news for crypto (e.g. BTC halving ) and in the world (e.g. Medical breakthrough for COVID-19).
If BTC is to break below its previous low of $3,150 , the last stand for this asset will be a weekly supply zone around the $2,000 level. If THIS level breaks, I am fully convinced we will see a free fall to $1,000 followed by a further breakdown to $650 and even lower ( around $250 ). This is indeed the true and final test for Bitcoin's narrative of being the Phoenix that will rise up from the financial system we see burning right before our eyes.
Will it be able to hold true to what it was created for ? Or will it go down with the rest of the world?
Let me know what you think!
Nothing here is financial advice.
Let us forget about the news and world events that are going on at the moment and take a step back to look at the technical data. In my opinion it is the chart data that is the most important and contrary to popular opinion is what drives the fundamentals in the world - and not the other way around. Taking a look at our higher time frame we can see that the recent rejection came from a supply zone back in July 2019. The recent fall in price was discussed in my last update and reached a very important support/demand area from the beginning of 2019. If we are to replicate this bottoming scenario, we should/want to see volatility cooling off. That does not mean we have seen the absolute low but we can expect not to see any larger volume spikes during this coming price action. In the coming months, it would be best to see candles and volume shrinking in preparation for a larger move. This will almost certainly coincide with some positive news for crypto (e.g. BTC halving ) and in the world (e.g. Medical breakthrough for COVID-19).
If BTC is to break below its previous low of $3,150 , the last stand for this asset will be a weekly supply zone around the $2,000 level. If THIS level breaks, I am fully convinced we will see a free fall to $1,000 followed by a further breakdown to $650 and even lower ( around $250 ). This is indeed the true and final test for Bitcoin's narrative of being the Phoenix that will rise up from the financial system we see burning right before our eyes.
Will it be able to hold true to what it was created for ? Or will it go down with the rest of the world?
Let me know what you think!
Nothing here is financial advice.
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.
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.