Multiple rejections at the 1D 100MA (light blue line) saw a break in the multi-week RSI support line and a cascading price drop of almost 20% in 4 days. All the way down to the bottom of the rising channel, until finding a strong support level at $20.7k.
Price has since bounced a little back above $21k, but with strengthening bearish momentum seen in the MACD. For any chance of the bullish case being realised, price needs to assertively reclaim the 1D 50MA at around $22.4k, otherwise it will be subjected to the oppressive influence of this important indicator sitting on top of it.
On a bright(ish) note, though, is that the RSI is so low that any sustained sell-off seems improbable. However, the potential for a brief spike lower, perhaps to a double bottom, still certainly exists.
Unless, of course, you agree with my Elliott Wave count and this was just a necessary correction for further advancement.
What do you think?
- Is price still moving upward within the rising channel?
- Will we see a brief but sharp fall towards a double bottom?
- Or is price about to collapse below $14k?
Price has since bounced a little back above $21k, but with strengthening bearish momentum seen in the MACD. For any chance of the bullish case being realised, price needs to assertively reclaim the 1D 50MA at around $22.4k, otherwise it will be subjected to the oppressive influence of this important indicator sitting on top of it.
On a bright(ish) note, though, is that the RSI is so low that any sustained sell-off seems improbable. However, the potential for a brief spike lower, perhaps to a double bottom, still certainly exists.
Unless, of course, you agree with my Elliott Wave count and this was just a necessary correction for further advancement.
What do you think?
- Is price still moving upward within the rising channel?
- Will we see a brief but sharp fall towards a double bottom?
- Or is price about to collapse below $14k?
