On April 22nd I wrote that it was highly likely that Bitcoin would continue down to test the 45,000 support level. However, I also said that it could turn out to be a failed breakout of the 51,300 support level. I said we would know fairly quickly within 24-48 hours.
Well, it took about 72 hours. Price is now back above the 51,300 support level and buyers came in with a lot of strength on April 25th around 5PM PST. Click link to see this on hourly chart screencast.com/t/vuI4yHmgzDGd
Today, on the daily chart we printed a buy volume climax bar and yesterday was also a buy volume climax bar. I have pointed these out with blue arrows. These two consecutive buy climax bars and price passing above the high of the April 23rd sell volume climax bar increase the chances of price continuing higher very soon. We'll see if price can completely come up and smash through the 21 day EMA which would make the sellers very nervous.
Now, it is also possible we could see another move down because when price corrects it usually does it in at least two moves. If that did happen, I would say it could go to the 44,000 price level or a little lower because that is where the 21 day EMA is for the weekly chart. I would then expect a bounce and resumption of the uptrend after that.
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