Bitcoin did bounce from the previous buy area(chart below). As I mentioned in the last update 66k area was the key resistance we needed to watch, which it could tell us if the bounce was trend continuation or just a dead cat bounce. It did end up being a dead cat bounce. However, bitcoin has not broken the Key/critical support yet, which is 58k
(A dead cat bounce is a temporary, short-lived recovery of asset prices from a prolonged decline or a bear market that is followed by the continuation of the downtrend.)
On the four-time frame, BTC is oversold historically what we often see is a bounce from these oversold areas to the previous low, which is now around 63K, previous support now resistance. What we need to watch out for is that this could be a potential bearish retest.
In daily time frames, BTC is testing a very important support zone between 60k-58k in confluence with EMA 50
Scenario 1 support holds we bounce from here: Plan buy dips 58-60k. Exit if BTC 58278 USD in four hours. I consider the green box, which is around 58k/60k, as a decent support zone.
Scenario 2 BTC breaks support and areas I am monitoring are for a bounce are 53k – 56.5K
For the coming period, probably more boring sideways action 58k -63k -66k with fake out’s
My mid Term Target is still valid 76K
P.s stay away from leverage for now
Support and resistance
Major resistance sits at 66k USD. Resistance 1 lies at 63k USD while Support zone 1: lies between 60k-58k again in confluence with EMA 50 D
EMA 50 is always a good indicator in a bull market
Also, BTC succeeded to fill the CME gap by this move
Support 2: sits at 56 501 USD and Support 3: 53 109 USD.
The Key of bull market-level sits at 47K absolute must hold
DXY is overbought daily and around the area of resistance (0.5 – 6.18fibs). I would expect in the coming weeks #DXY to slow down, take a pause and give BTC a chance to run again.
The 0.96 – 0.97 level used to be 501-day support. Break support now resistance.
LONG TERM PLAN STILL THE SAME :)
(A dead cat bounce is a temporary, short-lived recovery of asset prices from a prolonged decline or a bear market that is followed by the continuation of the downtrend.)
On the four-time frame, BTC is oversold historically what we often see is a bounce from these oversold areas to the previous low, which is now around 63K, previous support now resistance. What we need to watch out for is that this could be a potential bearish retest.
In daily time frames, BTC is testing a very important support zone between 60k-58k in confluence with EMA 50
Scenario 1 support holds we bounce from here: Plan buy dips 58-60k. Exit if BTC 58278 USD in four hours. I consider the green box, which is around 58k/60k, as a decent support zone.
Scenario 2 BTC breaks support and areas I am monitoring are for a bounce are 53k – 56.5K
For the coming period, probably more boring sideways action 58k -63k -66k with fake out’s
My mid Term Target is still valid 76K
P.s stay away from leverage for now
Support and resistance
Major resistance sits at 66k USD. Resistance 1 lies at 63k USD while Support zone 1: lies between 60k-58k again in confluence with EMA 50 D
EMA 50 is always a good indicator in a bull market
Also, BTC succeeded to fill the CME gap by this move
Support 2: sits at 56 501 USD and Support 3: 53 109 USD.
The Key of bull market-level sits at 47K absolute must hold
DXY is overbought daily and around the area of resistance (0.5 – 6.18fibs). I would expect in the coming weeks #DXY to slow down, take a pause and give BTC a chance to run again.
The 0.96 – 0.97 level used to be 501-day support. Break support now resistance.
LONG TERM PLAN STILL THE SAME :)
