Price has been rejected from the 22500 resistance.
To be fair, this is the most significant resistance we have on the chart right now considering that it is both a daily resistance and the 200W MA which has been acting as support in the past and should now act as resistance.
The way I see it there are two basic scenarios here:
A) Bullish Scenario:
The price manages to consolidate between 20500-22500 while printing higher lows.
This would appear as a mirrored triangle on the charts and it basically means seller exhaustion.
Those formations are usually bullish, thus, once we break 22500 we should see a significant move to the upside.
In every breakout to the upside the first important resistance is usually the most significant, therefore, if 22500 break I think we should be looking for a mean reversion rally to the 28k-32k cluster. Don't fade it too early.
B) Bearish Scenario
Should the price loses 20500 on a daily level (print at least 2 days below 20k) I would expect to see a short consolidation (desperate attempts to reclaim 20k level) followed by a breakdown.
In that case any retest of 20k level is a potential sell or opportunity to close any underwater longs that you may have.
In that case I don't necessarily think we will go very low. Not that we couldn't but in my opinion there's gonna be interest around the 15.8k - 16.6k area. Maybe even a bounce from previous lows (17.6). So, don't leverage your shorts.
If this helped you in any way please give it a like. ty!
To be fair, this is the most significant resistance we have on the chart right now considering that it is both a daily resistance and the 200W MA which has been acting as support in the past and should now act as resistance.
The way I see it there are two basic scenarios here:
A) Bullish Scenario:
The price manages to consolidate between 20500-22500 while printing higher lows.
This would appear as a mirrored triangle on the charts and it basically means seller exhaustion.
Those formations are usually bullish, thus, once we break 22500 we should see a significant move to the upside.
In every breakout to the upside the first important resistance is usually the most significant, therefore, if 22500 break I think we should be looking for a mean reversion rally to the 28k-32k cluster. Don't fade it too early.
B) Bearish Scenario
Should the price loses 20500 on a daily level (print at least 2 days below 20k) I would expect to see a short consolidation (desperate attempts to reclaim 20k level) followed by a breakdown.
In that case any retest of 20k level is a potential sell or opportunity to close any underwater longs that you may have.
In that case I don't necessarily think we will go very low. Not that we couldn't but in my opinion there's gonna be interest around the 15.8k - 16.6k area. Maybe even a bounce from previous lows (17.6). So, don't leverage your shorts.
If this helped you in any way please give it a like. ty!
