Bitcoin appears to be consolidating before the next leg down. It could bounce but I believe that is unlikely due to the extent of this run from $3100 to $9100 and also where it ultimately was rejeted.
The rejection level also happens to be cloud resistance on the weekly Ichimoku Cloud, and the 1.618 line of a downtrend fib channel, as well as the top of the Bollinger Band (see charts below.)
Temporary support will likely be found on the channel trend lines mentioned in this previous chart all the way down. Last night it touched down on the 1 fib line of the same channel.
Next stop after consolidation would be between $7600 and $7400 over the next several days. Consolidation will build hope up and longs will come back in only to get liquidated once again.
The rejection level also happens to be cloud resistance on the weekly Ichimoku Cloud, and the 1.618 line of a downtrend fib channel, as well as the top of the Bollinger Band (see charts below.)
Temporary support will likely be found on the channel trend lines mentioned in this previous chart all the way down. Last night it touched down on the 1 fib line of the same channel.
Next stop after consolidation would be between $7600 and $7400 over the next several days. Consolidation will build hope up and longs will come back in only to get liquidated once again.
- 30% correction takes the price to $6350
- 33% correction takes the price to $6100
- 40% correction takes the price to $5450
