Bitcoin Searching for Support: Market Psych Depression Phase?
A slight drift from the trend line yesterday evening was easily enough to cause a torrent of selling all the way back down to the lows on June 13th. Let’s take a look at when the selling may stop.
On the hourly analog Bitcoin Bitfinex chart, you don’t need to be told about the huge plunge taking place as we speak. Overnight the rising wedge between the black lines and the bearish flag between the yellow lines were quickly broken. I thought there might be more of a bounce, but the bears and shorts are crushing it.
And here we go. Price just broke the low of $6,000 back in February, currently dipping below $5,970. It’s exciting seeing this action as it’s been so boring otherwise.
I took at snapshot already because the screen is shifting the rest of the pricing action to account for the drop. Even the lime green down-trending line that could have been support for the previous lows from February, April and today has been broken as well.
Despite price plummeting there is some bullish divergence taking place between the price and RSI, where price is making lower lows and the RSI making higher highs. Be careful not to catch the falling knife right now. The other end of the down-trending pitchfork should provide decent support for this move at around $5,600 and hopefully price could stabilize around there.
The MACD did look like it wanted to curl up a few hours ago, however there was a small pink rising wedge that was broken, around the median line of the pitchfork.
Price now appears to be getting a pretty decent bounce off the 1 standard deviation (sd) outer blue channel of the pitchfork and back up to that lime green down-trending support line. It’s going to be really interesting to see if that holds.
On the daily analog Bitcoin Bitfinex chart, my target from yesterday hit pretty much to a 24 hour tee at $6,000 which is cool, but depending on volume and rally from here, this could be the bounce that that we need yesterday on the RSI and MACD charts.
I would say if price can hold this $6,000 level for the next few hours until this pricing candle closes, there is a good chance we could get a nice rally tomorrow. That would give a solid bullish reversal divergence that I have marked with an up-trending pink line on the RSI indicator showing a higher low and price giving the lower low. Additionally the RSI is still very close to over sold levels.
The MACD blue trigger line also has not crossed back over bearishly just yet, where if price does rally tomorrow that upward trend between the MACD lines would still be intact with the blue line rising above the orange line. There is still bullish reversal divergence here too.
This $6,000 has been very strong for support, but looking at the long term Fibonacci Retracement, there could be a capitulation/ depression event down to the $4,393 level at the blue .786 Fib. Even the $5,000 level would be great psychological support as well.
I wouldn’t expect that to take place over the weekend, but over the next few weeks if volume does not pick up drastically. Hopefully today’s action is the start to that.
I also added one more bonus chart I made mapping the psychology of a market cycle to the Bitcoin chart. Another interesting point that we may be nearing the end of the bear. Have a good weekend!
-More at Vanddar.com
On the hourly analog Bitcoin Bitfinex chart, you don’t need to be told about the huge plunge taking place as we speak. Overnight the rising wedge between the black lines and the bearish flag between the yellow lines were quickly broken. I thought there might be more of a bounce, but the bears and shorts are crushing it.
And here we go. Price just broke the low of $6,000 back in February, currently dipping below $5,970. It’s exciting seeing this action as it’s been so boring otherwise.
I took at snapshot already because the screen is shifting the rest of the pricing action to account for the drop. Even the lime green down-trending line that could have been support for the previous lows from February, April and today has been broken as well.
Despite price plummeting there is some bullish divergence taking place between the price and RSI, where price is making lower lows and the RSI making higher highs. Be careful not to catch the falling knife right now. The other end of the down-trending pitchfork should provide decent support for this move at around $5,600 and hopefully price could stabilize around there.
The MACD did look like it wanted to curl up a few hours ago, however there was a small pink rising wedge that was broken, around the median line of the pitchfork.
Price now appears to be getting a pretty decent bounce off the 1 standard deviation (sd) outer blue channel of the pitchfork and back up to that lime green down-trending support line. It’s going to be really interesting to see if that holds.
On the daily analog Bitcoin Bitfinex chart, my target from yesterday hit pretty much to a 24 hour tee at $6,000 which is cool, but depending on volume and rally from here, this could be the bounce that that we need yesterday on the RSI and MACD charts.
I would say if price can hold this $6,000 level for the next few hours until this pricing candle closes, there is a good chance we could get a nice rally tomorrow. That would give a solid bullish reversal divergence that I have marked with an up-trending pink line on the RSI indicator showing a higher low and price giving the lower low. Additionally the RSI is still very close to over sold levels.
The MACD blue trigger line also has not crossed back over bearishly just yet, where if price does rally tomorrow that upward trend between the MACD lines would still be intact with the blue line rising above the orange line. There is still bullish reversal divergence here too.
This $6,000 has been very strong for support, but looking at the long term Fibonacci Retracement, there could be a capitulation/ depression event down to the $4,393 level at the blue .786 Fib. Even the $5,000 level would be great psychological support as well.
I wouldn’t expect that to take place over the weekend, but over the next few weeks if volume does not pick up drastically. Hopefully today’s action is the start to that.
I also added one more bonus chart I made mapping the psychology of a market cycle to the Bitcoin chart. Another interesting point that we may be nearing the end of the bear. Have a good weekend!
-More at Vanddar.com
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