Bitcoin remains in a descending channel pattern.
It will break out this week.
2 most likely scenarios to play out this week drawn on the chart.
(Scenario 1 we break the descending channel and go up to test resistance at 43k)
Scenario 2 we break further down testing support and the bottom of the channel at 28k and then bounce up to test 43k)
After we retest 43k its anyones guess if we break above it or fall down to further lows.
A couple things to point out is that we have a bullish divergence on multiple timeframes.
MFI and RSI are oversold on the Daily
Also this has been one of the single biggest % drops in crypto market history this past week.
CRYPTO FEAR / GREED index is measuring a 14.
You have a lot more institutional acceptance & money as well as public notice in this space now than you did in 2017 which is why I think 28k would be the bottom in the short term. But again, this is crypto and I fully expect a retest of 19k or lower at some point in the future.
Lots of people are capitulating. It will be Interesting to see how US financial markets react to this crypto drop tomorrow morning.
Let me know what you think.
It will break out this week.
2 most likely scenarios to play out this week drawn on the chart.
(Scenario 1 we break the descending channel and go up to test resistance at 43k)
Scenario 2 we break further down testing support and the bottom of the channel at 28k and then bounce up to test 43k)
After we retest 43k its anyones guess if we break above it or fall down to further lows.
A couple things to point out is that we have a bullish divergence on multiple timeframes.
MFI and RSI are oversold on the Daily
Also this has been one of the single biggest % drops in crypto market history this past week.
CRYPTO FEAR / GREED index is measuring a 14.
You have a lot more institutional acceptance & money as well as public notice in this space now than you did in 2017 which is why I think 28k would be the bottom in the short term. But again, this is crypto and I fully expect a retest of 19k or lower at some point in the future.
Lots of people are capitulating. It will be Interesting to see how US financial markets react to this crypto drop tomorrow morning.
Let me know what you think.
