Here we have BTC/USD on the 4H chart.
BTC/USD is in a corrective move. Bitcoin has been trading downwards for a while. Recently, price has hot the 200 moving average, and is currently using it as a support.
It appears BTC/USD is now ready for an upside move soon. Price is showing a nice corrective move so far, and I am expecting a bounce soon. Before this bounce begins, there is some corrective levels that need to be considered.
I have listed the important support levels for a bounce below, and I will also outline my preferred scenario:
- 200 moving average support: 13880. If price corrects here and supports, this could show that the 200 moving average has been acknowledged and investors do not want to see price go below this level.
- Support zone #1: 12400-11200: This is the first I expect Bitcoin to hit, if the above support fails. If price hits this level and corrects, it would show this is strong and valid (as its been used 3 times as support in recent times) and would signify the support is a good launch pad for a higher price move. Also, if price bounces here, we would also get the breakout of the sideways , providing my preferred move.
- Support zone #2: 9100-7800: This is the deepest correction I can see for Bitcoin . If price gets to here, it has had to break a major (Backed up by , ) and really shows a weakness in Bitcoin as a whole. If Bitcoin hits this bottom level I am expecting a bounce and an energetic up move, but this is my least preferred scenario as such a drop would make it unlikely that my swing high target at 19700 will ever get hit.
If price successfully bounces eventually (The more shallow the correction the better) then I am expecting momentum to pick up, and provide a strong up move, to the previous swing high level at 19670.
Bare in mind that the deeper the correction, the further price has to climb to achieve the latter target. So it's important to use this analysis as a guide but ultimately mirror your own.
I will be updating this analysis if it gets above 40 likes.
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