A few hours ago, BTC lowered its low all the way down to $6400 and bounced back to $7400. This surge seems very similar to previous President Xi's pumping so I wanted to share this fractal perspective.
Check point
1. From previous high, BTC fell about 20% and bounced back a little bit by printing hammer candle.
2. The price even went below and lowered its low again. Please notice the stochastic RSI below as it formed bullish divergence. If you look at the price at 1, the price goes down from 1 to 2. However, Stochastic RSI actually goes up from 1 to 2 phase, printing higher low.
3. And, as BTC reflects stochastic RSI bullish divergence, the price attempts to rebound from 2.
4. After that, BTC forms bullish flag and continues to go up.
5. At this point, BTC peaked at here, remaining unrecoverable its previous high.
6. BTC entered bearish downward channel by lowering its low over and over again.
7. The price tests its upper part of downward channel but can't go above previous high which is 5.
8. The price breakdown below its lowest point, which is No.2. And when everyone else is expecting downward, BTC actually surges and goes above 7.
However, there's a difference compared to previous October price action. This bounce seems like won't be able to go above #5 which means that this surge might be weaker than President Xi's pumping. Since October, as you all know, BTC showed continuous downward. Therefore, from now on, BTC may show continuous downward, actually weaker than October. Please make sure that where the next support areas are by referring to the ideas linked below.
Thank you.
After all, only Traders who have right strategies that penetrate markets will survive, not people trading with luck or without criteria.