Here we have BTC/USD on the 4H chart.
Price recently began a corrective move to the downside after a strong upside move. Since price has been correcting, there has been a strong down move.
At this present moment, there is 2 major levels I have in mind for BTC/USD for a correction. We would prefer see the correction higher as this increases the likelihood of the up trend continuing, but this might not be possible as price action currently looks like it will fail at the preferred correction area. I am now putting my bets on the correction ending in the (correction level #2) at 11880.
The correction levels I am expecting price to hit are:
-14100. This is the sideways turned support. A retest on this level would confirm the long term uptrend resistance is broken and not Bitcon can trade freely without structure restrictions. It currently looks extremely weak and I do believe that if price breaks below 12900, then this structure has definitely failed. For now, it could still retrace, but I wouldn't hold my breath.
-11880. This is the last major that Bitcoin had. This level is a strong support and will likely be the level that will catch Bitcoin as it tumbles. I am putting my bets on this area being the level where price bounces and begins a new upside move.
A move to 11880 would be a steep correction, but it would retest a major structure level at the same time. So we want to see this happen. If price breaks this level it could show a lack of integrity in Bitcoin uptrend.
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I will be updating this analysis as it progresses.
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If you read above properly, I state that if price breaks below 12900, that there will be a steeper correction to the downside, which will mean a long opportunity.
If price does not correct before 12900 (As it says above) then it will likely go to the lower correction.
Thanks for your compliments.