Bitcoin correction underway
Hello traders,
Weekly time-frame will be a the main point of reference for this analysis, as it paints the bigger picture of the market.
After breaking the 3000-4000 region which was a zone of accumulation, BTC price had a bullish rally all the way to 9000 region with not a single bearish candle on the bigger time-frames such as the weekly, which gave me the impression that the bullish momentum could not sustain for much longer and that a correction of around 30%-40% was inevitable, this however was covered in depth on prior analysis so if you haven't read it yet I'd suggest you to go back and do it.
Although I thought that the catalyst of this correction would be the 9200-9600 levels it seems like it can happen earlier. Last weeks candle closed as a DOJI candlestick, showing a clear indecision between bulls and bears and a potential of bears to take over.
This weeks candle fell as low as 7500, and there's a key level to take into consideration, that of 7788 which confluences with the spike of the previous shooting star which took us to the 3000 region.
Should this weeks candle CLOSE below this level (anywhere between the grey rectangle) would confirm a bearish bias, and the 6000 region would be a real possibility.
Weekly time-frame will be a the main point of reference for this analysis, as it paints the bigger picture of the market.
After breaking the 3000-4000 region which was a zone of accumulation, BTC price had a bullish rally all the way to 9000 region with not a single bearish candle on the bigger time-frames such as the weekly, which gave me the impression that the bullish momentum could not sustain for much longer and that a correction of around 30%-40% was inevitable, this however was covered in depth on prior analysis so if you haven't read it yet I'd suggest you to go back and do it.
Although I thought that the catalyst of this correction would be the 9200-9600 levels it seems like it can happen earlier. Last weeks candle closed as a DOJI candlestick, showing a clear indecision between bulls and bears and a potential of bears to take over.
This weeks candle fell as low as 7500, and there's a key level to take into consideration, that of 7788 which confluences with the spike of the previous shooting star which took us to the 3000 region.
Should this weeks candle CLOSE below this level (anywhere between the grey rectangle) would confirm a bearish bias, and the 6000 region would be a real possibility.
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