BTC/USD is in a corrective move. Bitcoin has been trading downwards for a while. Recently, price has hot the 200 moving average, and is currently using it as a support.
It appears BTC/USD is now ready for an upside move soon. Price is showing a nice corrective move so far, and I am expecting a bounce soon. Before this bounce begins, there is some corrective levels that need to be considered.
I have listed the important support levels for a bounce below, and I will also outline my preferred scenario:
200 moving average support: 13880. If price corrects here and supports, this could show that the 200 moving average has been acknowledged and investors do not want to see price go below this level.
Support zone #1: 12400-11200: This is the first support area I expect Bitcoin to hit, if the above support fails. If price hits this level and corrects, it would show this support zone is strong and valid (as its been used 3 times as support in recent times) and would signify the support is a good launch pad for a higher price move. Also, if price bounces here, we would also get the breakout of the sideways structure resistance, providing my preferred move.
Support zone #2: 9100-7800: This is the deepest correction I can see for Bitcoin. If price gets to here, it has had to break a major support level (Backed up by Fibonacci confluence, structure support) and really shows a weakness in Bitcoin as a whole. If Bitcoin hits this bottom level I am expecting a bounce and an energetic up move, but this is my least preferred scenario as such a drop would make it unlikely that my swing high target at 19700 will ever get hit.
If price successfully bounces eventually (The more shallow the correction the better) then I am expecting momentum to pick up, and provide a strong up move, to the previous swing high level at 19670.
Bare in mind that the deeper the correction, the further price has to climb to achieve the latter target. So it's important to use this analysis as a guide but ultimately mirror your own.
I will be updating this analysis if it gets above 40 likes.
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I will be updating this analysis in realtime when my brand new AUD/CHF analysis posted on my TradingView receives more likes !!
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Posted a brand new analysis on BTC/USD on my TradingView profile.
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Brand new DGB/BTC analysis posted on my TradingView profile.
Here I provide my latest thoughts, and offer potential targets to look for a profitable opportunity soon.
head and shoulders pattern confirmed, its done, down we go.
TomProTrader
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@MonirNader, Yep, it's good to know where we're likely to go too, though.
mry6
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@TomProTrader, Do you think it'll first bounce at 12-12.5k recover then go down or that it would go pretty straight down to the sub-10k levels, if we were to say those were the final dip levels?
TomProTrader
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@mry6, It will either recover at the support zone at 12.5 and show new upside. Or, it will get to 12.5, consolidate and break down to the lower levels.
One thing I didn't note in my analysis that the lower support on my chart is actually a measure move of a 3 wave bearish pattern on the chart. So if this pattern was to play out, then we would see lows at support zone of round 9000.
I think after it hits the second support zone it will surely bounce. If it goes further then, not good.
mry6
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@TomProTrader, Thanks Tom, I'm playing that it will go down to "not good" levels, but I just wanted to know if it would be straight down to 9000 or not. You telling me that it should at least consolidate, meaning at least a small bounce if I'm correct, gives me confidence in buying at 12.5 and selling a bit higher, readying myself for the big downturn >:D
TomProTrader
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@mry6, I am going to be oing the exact same thing you just said, if the consolidation comes in at the predicted level.
Let's see how this one pans out!
netsky11
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Thanks for your TA. and I also click 'like' button for update !
TomProTrader
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@netsky11, Thanks! Give a like on my latest AUD/CHF analysis if possible. :)