HELLO ALL AND GOOD MORNING TO EVERYONE.
In the last update we were following some potential continuation patterns that resulted in a rejection and break down into our first daily demand zone around $6,900. We can see that this level is coinciding with the 21D EMA. Looking at the 4H chart we have has a slight bullish cross of the 55 and 200 EMA. Common Fibonacci retrace zones are lining up with our daily demand areas and until we go below the 0.236 we should not be expecting any further decline just yet.
Rejection from the 13W EMA is suggesting we take this fibonacci tool seriously and be in anticipation that we have seen this retrace play out in its entirety.
Do not underestimate the power of this tool or the volatility of this asset. The 1.618 target is more than a possibility.
If we are to make some sort of bottoming pattern here we will need to do so around the 0.786-0.618 fib retrace level between $4,700 and $5,300, also making sure not to close any weekly candles below the 200W EMA.
Monthly chart is showing a rejection at a key EMA and support now turned resistance which does not bode well for future price.
4H chart and rising channel mid line currently being tested. It is likely we have a rebound from this area if only to be rejected again and hit the lower line.
As of right now this decline is not anything too serious but has the potential to exacerbate into a major loss like we saw from $7,000 to $4,000. More information will be needed to conclude what might be going on. As the weekly candle closes we will have more of an idea of what is to come.
Currently the most important thing to watch would be the potential fib retrace zones and daily demand areas.
If price manages to break previous high points it will most likely not stop until filling that CME gap up at 9k
This is only my opinion and not trade advice.
Feel free to send me a private message with any questions or concerns!
In the last update we were following some potential continuation patterns that resulted in a rejection and break down into our first daily demand zone around $6,900. We can see that this level is coinciding with the 21D EMA. Looking at the 4H chart we have has a slight bullish cross of the 55 and 200 EMA. Common Fibonacci retrace zones are lining up with our daily demand areas and until we go below the 0.236 we should not be expecting any further decline just yet.
Rejection from the 13W EMA is suggesting we take this fibonacci tool seriously and be in anticipation that we have seen this retrace play out in its entirety.
Do not underestimate the power of this tool or the volatility of this asset. The 1.618 target is more than a possibility.
If we are to make some sort of bottoming pattern here we will need to do so around the 0.786-0.618 fib retrace level between $4,700 and $5,300, also making sure not to close any weekly candles below the 200W EMA.
Monthly chart is showing a rejection at a key EMA and support now turned resistance which does not bode well for future price.
4H chart and rising channel mid line currently being tested. It is likely we have a rebound from this area if only to be rejected again and hit the lower line.
As of right now this decline is not anything too serious but has the potential to exacerbate into a major loss like we saw from $7,000 to $4,000. More information will be needed to conclude what might be going on. As the weekly candle closes we will have more of an idea of what is to come.
Currently the most important thing to watch would be the potential fib retrace zones and daily demand areas.
If price manages to break previous high points it will most likely not stop until filling that CME gap up at 9k
This is only my opinion and not trade advice.
Feel free to send me a private message with any questions or concerns!
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.
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.