We can draw the Fib Levels for retracement from the bearish wave starting at 7400$ all the way to 6100$.
The moves that we are currently in are a typical retracement pattern where we tests the various levels as supports and resitances.
We see from the red arrows that the 0.382 and 0.500 levels acted as strong resistnaces. On the flip side, the 0.236 and the 0.000 level acted as supports.
However, the action lately as been bearish since we have broken support (0.236 level) and it is now turning resistance. We also have a bearish cross on the Stochastic RSI which has been a good indicator in the last couple of months.
I suspect we will be retesting the base level which coincides with the base of our big triangle (red line).
If we find support on the red line, this will be an extremely good entry. If we don't we will be retesting 5800$ level again.
The moves that we are currently in are a typical retracement pattern where we tests the various levels as supports and resitances.
We see from the red arrows that the 0.382 and 0.500 levels acted as strong resistnaces. On the flip side, the 0.236 and the 0.000 level acted as supports.
However, the action lately as been bearish since we have broken support (0.236 level) and it is now turning resistance. We also have a bearish cross on the Stochastic RSI which has been a good indicator in the last couple of months.
I suspect we will be retesting the base level which coincides with the base of our big triangle (red line).
If we find support on the red line, this will be an extremely good entry. If we don't we will be retesting 5800$ level again.