BTC 25433 to 29400 Tradable Low, Bullish Long Term
Fibonacci extensions that measure the current decline against the next previous decline show a downside potential target of 25,433 at the 1.0 (100%) extension.
Essentially, this means that the current move is likely to be parallel and proportional to the prior move down from all-time highs (the Nov. 10, 2021 to Dec. 4, 2021 decline). The current decline began after the corrective move (bounce) higher ending December 27, 2021.
Weekly Stochastics are getting oversold, but in a strong downtrend like the current one, oversold conditions can persist for quite some time. Oversold in a downtrend is not a buy signal.
However, fundamentally, there are strong reasons to remain bullish on BTC long term, so watch for a tradable low. Perhaps this 25K - 29K will be such a low, and present a good buying opportunity.
But BTC needs to break through resistance at 39K-40K decisively to think the bullish case is back on. BTC may bounce at the bottom of the current decline and then create a trading range sideways with resistance at 39K-40K and support at 25K-29K.
Essentially, this means that the current move is likely to be parallel and proportional to the prior move down from all-time highs (the Nov. 10, 2021 to Dec. 4, 2021 decline). The current decline began after the corrective move (bounce) higher ending December 27, 2021.
Weekly Stochastics are getting oversold, but in a strong downtrend like the current one, oversold conditions can persist for quite some time. Oversold in a downtrend is not a buy signal.
However, fundamentally, there are strong reasons to remain bullish on BTC long term, so watch for a tradable low. Perhaps this 25K - 29K will be such a low, and present a good buying opportunity.
But BTC needs to break through resistance at 39K-40K decisively to think the bullish case is back on. BTC may bounce at the bottom of the current decline and then create a trading range sideways with resistance at 39K-40K and support at 25K-29K.
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