Bitcoin seems to want to close today's daily candle under this descending triangle in blue and below the key support at $48k. As soon as that happens, I believe we're clear to go lower and towards $41k which will be a key buy area for long term hold.
Therefore, save your cash for this scenario as we may re-visit lower levels and you don't want to miss such a buy opportunity. Alts may also drop lower on this move which can provide even better returns if bought at that time.
The $41k level is a very strong support as it coincides with three key levels (see in yellow 1, 2, 3):
1. Previous high from Jan 2021 which will be retested as support;
2. The 200 Moving Average will reach a price around $40-41k which is likely to provide support at that level as well;
3. The Fib 38.2 retracement is at $41k which is usually a decent level to buy at in a bullish market (compared to the current top / ATH).
Such a drop would be a -35% from our current ATH, nothing too concerning and pretty common in a bull market considering the past. My only concern is if the 50 MA (yellow line) will do a bearish cross / death cross with the 100 MA (green line). That is usually a long term bear indicator... So buying at $41k has some risk due to that.
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Therefore, save your cash for this scenario as we may re-visit lower levels and you don't want to miss such a buy opportunity. Alts may also drop lower on this move which can provide even better returns if bought at that time.
The $41k level is a very strong support as it coincides with three key levels (see in yellow 1, 2, 3):
1. Previous high from Jan 2021 which will be retested as support;
2. The 200 Moving Average will reach a price around $40-41k which is likely to provide support at that level as well;
3. The Fib 38.2 retracement is at $41k which is usually a decent level to buy at in a bullish market (compared to the current top / ATH).
Such a drop would be a -35% from our current ATH, nothing too concerning and pretty common in a bull market considering the past. My only concern is if the 50 MA (yellow line) will do a bearish cross / death cross with the 100 MA (green line). That is usually a long term bear indicator... So buying at $41k has some risk due to that.
Like and follow if you liked this idea! Also join my crypto community to stay in touch!
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