BITCOIN - It Should Make a Pullback but Mid-Term Bias Is Bearish
Updated
The short-term price structure has changed and probably we could see a correction downwards but not right now. It just looks too strange graph if it starts to go downwards right away, it doesn't match with anything, that's why I think we might see a pullback to the blue box.
Yesterday we got a pretty wide candle range - around $500. The bounce downwards came from the round number area $5,500, which was on my upwards target list about a week ago. The price got a bounce downwards from there, it cracked all the major counter trendlines around this area and it made a short-term lower low, price stops at 5k. As you read, then we have a pretty high count of bearish signs from the price action perspective, so, that's why I think that the price has started a little correction downwards BUT firstly, it has to make a pullback upwards. If it starts to drop right away than it would be something ugly because as said before, it just doesn't look correct and the picture is not common if it starts to drop right now but if it starts to drop then it goes like a stone!
More likely is a pullback upwards and from there it might take another leg downwards. Target is a little bit deeper, below the 5k levels.
Current level support which has to hold to go to the green arrow direction:
- Short-term trendlines crossing areas
- Round number 5k
- Multiple rejections from 5k level
- 4H Hammer candlestick pattern.
The bounce area might be a bit sloppy because of the drawn subjective trendlines (not precisely from wick to wick).
Pullback ends/another leg downwards starts around $5,300, bearish criteria:
- Overall bearishness on short-term price action
- Bigger channel (blue lines) middle-trendline should work as a resistance
- Gray channel upper trendline projection should work as a resistance
- Fibonacci golden ratio 62%
- Recently worked resistance level at $5,325
Firstly, the price has to reach there and it has to start rising from the current level.
This idea becomes invalid if the price breaks lower than the current short-term low $4,900.
Please, take a second and support my idea post by hitting the "LIKE" button, it is my only fee from You!
Have a nice day,
Best regards!
*This information is not a recommendation to buy or sell, it is used for educational purposes only!
Yesterday we got a pretty wide candle range - around $500. The bounce downwards came from the round number area $5,500, which was on my upwards target list about a week ago. The price got a bounce downwards from there, it cracked all the major counter trendlines around this area and it made a short-term lower low, price stops at 5k. As you read, then we have a pretty high count of bearish signs from the price action perspective, so, that's why I think that the price has started a little correction downwards BUT firstly, it has to make a pullback upwards. If it starts to drop right away than it would be something ugly because as said before, it just doesn't look correct and the picture is not common if it starts to drop right now but if it starts to drop then it goes like a stone!
More likely is a pullback upwards and from there it might take another leg downwards. Target is a little bit deeper, below the 5k levels.
Current level support which has to hold to go to the green arrow direction:
- Short-term trendlines crossing areas
- Round number 5k
- Multiple rejections from 5k level
- 4H Hammer candlestick pattern.
The bounce area might be a bit sloppy because of the drawn subjective trendlines (not precisely from wick to wick).
Pullback ends/another leg downwards starts around $5,300, bearish criteria:
- Overall bearishness on short-term price action
- Bigger channel (blue lines) middle-trendline should work as a resistance
- Gray channel upper trendline projection should work as a resistance
- Fibonacci golden ratio 62%
- Recently worked resistance level at $5,325
Firstly, the price has to reach there and it has to start rising from the current level.
This idea becomes invalid if the price breaks lower than the current short-term low $4,900.
Please, take a second and support my idea post by hitting the "LIKE" button, it is my only fee from You!
Have a nice day,
Best regards!
*This information is not a recommendation to buy or sell, it is used for educational purposes only!
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