Bitcoin is about to FALL again
Just as you start to think Bitcoin has reached the bottom and is forming a base, it takes a few steps sideways before another tumble down the stairs.
As we approach the weekend, there is a strong possibility it could be in for another sell off that will take Bitcoin below $7,000. But there is good news, you will be able to accumulate more Bitcoin for a cheaper price!
Let's take a look at the last Bitcoin chart I posted:
As we can see, I mentioned the next projected target for Bitcoin will be near $7,000 and then followed by $5,350.
Price is now at $7,500 at the time of writing and slowly climbing. Before you get excited by this rally, lets take a closer look. Take note the candlestick formations. This correction does not look convincing at all by the number of candles required to rise from $7,450 to $7,650. Now take a look at the long red candles either side.
We can see there is another recent slow grind has occurred. There cannot be significant demand at this price point and therefore on a probability based assessment further downside is to be expected.
To draw in the last of the FOMO'ers, we could see a bullish "pop" higher before it starts its decline. This would also form the 3rd lower high in the pennant formation and would be a great area to place a stop loss in a short trade to our projected target of $7,000.
Nice analysis and I agree, I see demand at $6570.
Awesome, the demand zone around $6,500 also aligns with a head & shoulder pattern with a neckline at $8,200 (I draw them a little differently)
I personally like the $6000 level even more, it was the origin of the move to $19k back lat last year, held again, earlier this year..so it's a strong level to watch out for..could also mean there are no more buyer at the level as well...we shall see.
That's a good point. What about the area between $5,100 and $5,500. Would you consider this a good demand zone?
Can you see the demand from Nov. and the wick from Feb. I believe there is more demand at that level.
Oh yeh, was the start of a pretty good bull run