Yesterday I discussed how price was being squeezed within a wedge. I said if price broke down, it'd likely drop to the $6,145-$6,050 support zone. That’s exactly what happened. It’s now consolidating right on top of that support.
Price is also sitting right on top of the 0.618 fib level (golden ratio). In addition to sitting on the support zone and golden ratio, it's very interesting that price is also sitting on the ascending support line (in yellow) that’s been in place since the start of this uptrend.
In my opinion, it’s time for bitcoin to put up or shut up. This is a very logical place to expect an impulse wave up. In addition to the multiple layers of support, we are seeing bullish divergence on the 4 hour MACD.
From a bearish point of view, this may just indicate a temporary rise to test the $6,305 resistance, only to drop back down to test the current support zone. If we see price decisively break below the 0.618 fib, the ascending support and the $6,145-$6,050 support, we should expect a drop to at least $5,900.
From a bullish point of view, a case can be made for this being the bottom of the ABC correction. If the bottom is in, we should expect an impulse wave up. It'll be crucial we see volume increase, and continue to increase, if the bullish scenario below is to play out.
Watch my video analysis for a MUCH deeper look at the market, including other possible outcomes.
Video Analysis:
BIAS:
Short Term: Neutral
Longterm: Very Bullish
I hope this has been helpful. I’d be happy to answer any questions in the comment section below. Until next time, wishing you safe and profitable trading!
Workin
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by Workin2005
