Bitcoin: Where is the bottom?
Were February 6th lows the absolute bottom in this bear market cycle? - I'm not convinced and I do see potential for bitcoin to trade into the 3000's.
If 'CURRENT SUPPORT' breaks, I believe 6,000 is the next key level. However, twice previously within this current bear market cycle, bitcoin has experienced significant downside capitulation when a long-term uptrend support was broken. Both times the subsequent selloff took price significantly lower where support was found at the confluence of the next key level and longer-term uptrend support. If 'CURRENT SUPPORT' breaks then previous price action would suggest a fall in value to 'CONFLUENT SUPPORT BELOW' at 3,000 - 4,000, a contributing case for why I believe that if revisited, 6,000 support could break and be the technical catalyst for even further downside price action.
There is significant 'RESISTANCE ABOVE' at 9,500 - 10,000 which could be overwhelming for 'CURRENT SUPPORT' to hold. The inevitable breakout of either the 'RESISTANCE ABOVE' or 'CURRENT SUPPORT' is the next key event to indicate where this market is heading. So long as bitcoin is contained within the overriding structure that is the bear channel, continuation is the default setting and reason for why I'm not yet convinced that February 6th lows were the absolute bottom in this bear market cycle.
If 'CURRENT SUPPORT' breaks, I believe 6,000 is the next key level. However, twice previously within this current bear market cycle, bitcoin has experienced significant downside capitulation when a long-term uptrend support was broken. Both times the subsequent selloff took price significantly lower where support was found at the confluence of the next key level and longer-term uptrend support. If 'CURRENT SUPPORT' breaks then previous price action would suggest a fall in value to 'CONFLUENT SUPPORT BELOW' at 3,000 - 4,000, a contributing case for why I believe that if revisited, 6,000 support could break and be the technical catalyst for even further downside price action.
There is significant 'RESISTANCE ABOVE' at 9,500 - 10,000 which could be overwhelming for 'CURRENT SUPPORT' to hold. The inevitable breakout of either the 'RESISTANCE ABOVE' or 'CURRENT SUPPORT' is the next key event to indicate where this market is heading. So long as bitcoin is contained within the overriding structure that is the bear channel, continuation is the default setting and reason for why I'm not yet convinced that February 6th lows were the absolute bottom in this bear market cycle.
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