BTC at long-term 0.782 Fib-Retracement and weekly 200 EMA !
Updated
Hi Traders,
Bitcoin is currently trading at interesting technical price levels.
The $4300 area is a very important Fibonacci-Retracement level. This is the 0.782 long-term fib-level derived from the previous bull-move which started in August 2015 and ended in December 2017. Furthermore, the 200 weeks exponential moving average (EMA) line is also right around around the same price level. Often, assets find support when touching the 200 EMA for the first time while retracing, and this is the weekly time frame so it is more significant.
On top of that, the relative strength index (RSI) on the daily time frame is at extremely oversold areas. We pretty much have never seen an RSI that low in the history of BTC.
There is a lot of fear in the market right now, however the technicals are very strong and suggest that this is a support area.
Because of that, traders can think about a speculative long entry with first targets at around $5000, $5500 and $6200.
We are not sure that $4300 is the bottom though. After a rally from here BTC could break this level and dip to the $3000 area which could finally be a longer term bottom.
Bitcoin is currently trading at interesting technical price levels.
The $4300 area is a very important Fibonacci-Retracement level. This is the 0.782 long-term fib-level derived from the previous bull-move which started in August 2015 and ended in December 2017. Furthermore, the 200 weeks exponential moving average (EMA) line is also right around around the same price level. Often, assets find support when touching the 200 EMA for the first time while retracing, and this is the weekly time frame so it is more significant.
On top of that, the relative strength index (RSI) on the daily time frame is at extremely oversold areas. We pretty much have never seen an RSI that low in the history of BTC.
There is a lot of fear in the market right now, however the technicals are very strong and suggest that this is a support area.
Because of that, traders can think about a speculative long entry with first targets at around $5000, $5500 and $6200.
We are not sure that $4300 is the bottom though. After a rally from here BTC could break this level and dip to the $3000 area which could finally be a longer term bottom.
Note
Look at the extremely low RSI on the daily time frame.Note
In the past days we had to consider our support as broken, however now we are back at it. The idea is still valid. Let´s see how it goes from here.Note
We had some sort of price action to the upside around the outlined levels, however not too much.The .786 support level has to be considered as broken. The lower 3000 levels can be considered for a long trade.
Note
our search for the bottom back then worked out pretty well. happy about the trade
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.