the Weekly S2 and the 50% fib of the recent upswing. There is also
Hidden between current levels and the Feb 6 low,
even though the current move hasn't bottomed out just yet.
The whole process of shifting trend on the takes time
and I think that is what we are seeing right now, that is, price entering
the Cloud, moving to the upper part and coming down to test the lower
part. This far it is all natural price action. What could cause concern is
the momentum down, but Bitcoin is very volatile and in that context it
is not unnatural either. As I see on internet, many are again worried and
wonder if they should sell. I still think that the Feb 6 bottom is a long
term bottom (I will add a link to that analysis below).
Even with a complete plunge through the Cloud there are reversal scenarios
for that too. I am specifically thinking of a possible Buy, if price moves
all the way down to the 7000 area (Monthly S1).
Still, Bulls are concerned since price has closed below the Kijun Sen
(white line) and they would like to see a close above it again, and the
Monthly at 9350 to ease the downside pressure.
If we see a daily close below the Cloud at 8600 we might see additional
downside pressure, but with a Cloud twist in place it is unlikely
to see follow through, at least on a first attempt. Support below the
Cloud is at 8200 (61,8 fib) and the Weekly S3 at 7900. Below that
we are looking at 7000.
For buyers who want to scale in on this dip, current level is a good start.
The bottom line of the analysis is that there is no need for a panic.