BTC to see highs of 8500$ before demise to 3,300$
CryptoAST BTC USD Breakdown
On our last breakdown of BTC USD, we outlined that we expected that 6,556$ support to be broken to the downside in order to meet our target and support level of 5,823$ for any chance of the bulls to take back charge. We got this totally wrong for the first time since beginning these weekly breakdowns for you guys and instead we saw price jump to 7,700$ from the 6,556$ support level. This if anything should tell you we are humans and not some supernatural computers that always know where price is heading.
Please DO NOT FOMO and up buying BTC at an overvalued price rather than getting a bargain!
Now, we will conduct another breakdown of BTC to re-assess the situation with BTC currently trading at 7,518$:
- We will begin this weeks analysis with the weekly chart. First and foremost, Calling shorts for the market to break the 6,556$ level was clearly not a stupid idea but in hindsight, we really shouldn’t have expected a drop just yet. The main reason for us expecting a break of the 6,556$ support level is simply because of the fact at that point in time, we were near the resistance trend line of a descending channel that we had been stuck in since may of 2019. This resistance trend line is not as strong as the greater resistance trend line of descending wedge, which we can see in black on the weekly chart. Now, here is the deciding factor, if we take a look at our momentum indicator RSI, we can see that the 57 level is area of high short propensity and we still had not reached that level, indicating to us that from the 6,556$ level we should have expected long activity to last to the 8,500$ level at the minimum in order to reach the resistance trend line of the descending wedge.
- This price action described above should verify to us that we SHOULD NOT expect bull run to begin before the bitcoin halving date scheduled for 17 days time. Instead we should be willing to see bitcoin jump to highs of 8,800$ before the BITCOIN HALVING date.
- On the daily chart, with BTC trading at 7,525$, we can see that firstly we are at EMA 200 resistance on the daily. Usually, id say that EMA will reject price back down to supporting levels of 6800$ and 6,556$ But things are a little different in this complex scenario. Why ? Simply because we are nearing the weekly close with a strong bullish weekly candle nearing close. In addition to this, we haven’t quite yet reached the resistance level of 8000$ whereby EMA resistance is in fact at. We actually expect for wicks to be as highs as 9400$ to the upside before the bears take back full charge - on the BTC chart, this would mean that price ascends to the resistance fan structure in blue (line). On our momentum indicators for the daily, we observe a bearish divergence with price seeing highs and momentum indicators seeing lows instead. This again backs up our initial thought that price can rise to 8,500$ and even as high as 9,500$ in wicks before bears take back charge supporting idea of a bearish divergence.
- We took more of a macro-approach in this breakdown looking at bigger time frames but as long as we get a break above 7,870$, longs to 8,500$ and 9,000$ are fine.
- DO NOT FOMO, we expect price to either be rejected at current level below 7,700$ and even if we break this level, and above 7,870$, then we will only see bullish activity to a maximum price of 9,000 with conservative upward targets at 8,500$. Thereafter, we expect a swift rejection to lows to 3,300$ and 4,400$ before final buy zones are approached at 2,800$.
CHECK OUT OUR TELEGRAM CHANNEL DOWN BELOW FOR TIMELY UPDATES AND EXACT ENTRIES!
On our last breakdown of BTC USD, we outlined that we expected that 6,556$ support to be broken to the downside in order to meet our target and support level of 5,823$ for any chance of the bulls to take back charge. We got this totally wrong for the first time since beginning these weekly breakdowns for you guys and instead we saw price jump to 7,700$ from the 6,556$ support level. This if anything should tell you we are humans and not some supernatural computers that always know where price is heading.
Please DO NOT FOMO and up buying BTC at an overvalued price rather than getting a bargain!
Now, we will conduct another breakdown of BTC to re-assess the situation with BTC currently trading at 7,518$:
- We will begin this weeks analysis with the weekly chart. First and foremost, Calling shorts for the market to break the 6,556$ level was clearly not a stupid idea but in hindsight, we really shouldn’t have expected a drop just yet. The main reason for us expecting a break of the 6,556$ support level is simply because of the fact at that point in time, we were near the resistance trend line of a descending channel that we had been stuck in since may of 2019. This resistance trend line is not as strong as the greater resistance trend line of descending wedge, which we can see in black on the weekly chart. Now, here is the deciding factor, if we take a look at our momentum indicator RSI, we can see that the 57 level is area of high short propensity and we still had not reached that level, indicating to us that from the 6,556$ level we should have expected long activity to last to the 8,500$ level at the minimum in order to reach the resistance trend line of the descending wedge.
- This price action described above should verify to us that we SHOULD NOT expect bull run to begin before the bitcoin halving date scheduled for 17 days time. Instead we should be willing to see bitcoin jump to highs of 8,800$ before the BITCOIN HALVING date.
- On the daily chart, with BTC trading at 7,525$, we can see that firstly we are at EMA 200 resistance on the daily. Usually, id say that EMA will reject price back down to supporting levels of 6800$ and 6,556$ But things are a little different in this complex scenario. Why ? Simply because we are nearing the weekly close with a strong bullish weekly candle nearing close. In addition to this, we haven’t quite yet reached the resistance level of 8000$ whereby EMA resistance is in fact at. We actually expect for wicks to be as highs as 9400$ to the upside before the bears take back full charge - on the BTC chart, this would mean that price ascends to the resistance fan structure in blue (line). On our momentum indicators for the daily, we observe a bearish divergence with price seeing highs and momentum indicators seeing lows instead. This again backs up our initial thought that price can rise to 8,500$ and even as high as 9,500$ in wicks before bears take back charge supporting idea of a bearish divergence.
- We took more of a macro-approach in this breakdown looking at bigger time frames but as long as we get a break above 7,870$, longs to 8,500$ and 9,000$ are fine.
- DO NOT FOMO, we expect price to either be rejected at current level below 7,700$ and even if we break this level, and above 7,870$, then we will only see bullish activity to a maximum price of 9,000 with conservative upward targets at 8,500$. Thereafter, we expect a swift rejection to lows to 3,300$ and 4,400$ before final buy zones are approached at 2,800$.
CHECK OUT OUR TELEGRAM CHANNEL DOWN BELOW FOR TIMELY UPDATES AND EXACT ENTRIES!
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