Bullish or Bearish: Watch Clitical Support Level of 18700

8 בנוב׳ 2022

With the crypto exchange's asset liquidation plan flowing as FUD, the BTC chart, which looked strong, looks fragile.
Technically, a Bullish Dragon (green)' s TP (21700) has almost been (but has yet) reached, and BTC is on the path to test the support of another giant Dragon (blue).

Dragon patterns (often simply wedges), large or small, bullish or bearish, their theoretically cleanest target is a Fibonacci retracement level of 0.786.
So let's look at the red, bearish dragon's FR 0.786, where several supports converge. It's around 18700.
If BTC is on the bullish path, but a further correction is needed, we would likely see a rebound at around 18700 (green trendlines), and a bullish Elliot progressive wave (green 12345) will follow.
On the other hand, if the price breaks down through the critical support level of around 18700, we would witness a massive decline reopening the downtrend (red 12345).

If the market turns out to be bearish, my immediate previous idea will be invalidated.
This analysis should be neutral, but I see corrections in a bullish path. So this is tagged "short."

Note: Gann Square and arcs are for reference. If you dislike it, you can ignore it. Criticism for Gann Square isn't welcome in the comment area.

9 בנוב׳ 2022

הערה

Update.