Bitcoin to see 4800$ price level!

Bitcoin to see 4800$ price level!

Crypto-AST BTC/USD Breakdown – 13/01/2020

– There is somewhat of a descending wedge on the wider scale of the daily chart with higher lows created at 19533$, 13093$ and 10523$ respectively. It is also important to point out that our fan structure (light blue lines indicated on chart) which has previously been used as support was broken through and now is acting as a resistance at the 8440$ price level whereby we saw a rejection and a high recorded at this price before consolidation into the 7900-8100$ region as the bears took back charge in the market. Now, it would be quite a feat if the bulls are able to cross above the 8500$ price level with this fan structure acting as resistance and with EMA 200 as a resistance at this level. I believe that bitcoin should be heading towards the previous price ceiling of 7600$ and if price ceilings are broken, they become temporary supports, so it’s safe to assume we may gain some consolidation at this level before any further bearish movement – this is inline with the fact that MA’s are at 7600$ for support. In the scenario that we see a bearish stop hunt, I would assume that price has maximum upward pressure to 8350$ in this scenario.
– For a more longer term analysis of the bitcoin market, we are eyeing a return to the 6800$ level with this level being broken leading to 6500$ and in the scenario that 6500$ is broken, our target is for 5823$ whereby we will find momentary support and consolidation at this level ; this seems in line with the fact that EMA 200 support currently lays at this level following a rejection from the support bound of the fan structure forming resistance. The most solid support of the fan structure comes at the 5000-4800$ level with this also being the supporting of the descending wedge and also being the support of the fan structure.
– We have a massive bearish bias in the market with our buy zones at 4800$, 3,300$ and finally but most likely of 2,200$! We will consider turns in the market and bull run psychology entering the market at any of these given price intervals.

– Now lets focus in more on our microscope and come to a judgement for the 4 hourly chart on the BITFINEX exchange. We can see that there is a bearish cross over of MA’s on the 4 hourly chart about to happen. Moreover, we can see that the MA’s are being used as support and a final break of the open of the latest candle at 8060$ will lead to a break of the ascending support line and also would lead to us swiftly making our way to the 7600$ EMA 200 support! None the less, as long as this supporting trend line structure is kept in tact, we may have wicks to as high as 8300$ but more reasonably 8200$ before bearish price action resumes.

– We see more evidence of the idea that we could see a bearish stop hunt towards the 8200-8300$ region before bearish activity really kicks in by the fact that we are seeing MA’s being used a support on the hourly chart. Moreover, the trend line was also used clearly as support. A minor bearish crossover on MA’s seems to be turning bullish and we saw clear bullish reversal candle formation on the hourly. Moreover, its evident that we may not see a straight price crash to 7600$ but rather we may see some support forming at the 7900$ level for price consolidation to retest the 8100$ previous price floor before price resumes its journey to the downside. With this evidence, I would advice not to short just yet unless we see the 8300$ level at the least or a clear reversal from the 8200$ level OR finally a break of ascending support trend line below 8060$ with conservative take profit at 7900$ and then re-entering once 7900$ is broken to the 7600$ price level.


Published at Mon, 13 Jan 2020 11:53:49 +0000

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