BTC – H4 – TESTING THE CLOUDS SUPPORT ZONE ! WHAT NEXT ?

BTC – H4 – TESTING THE CLOUDS SUPPORT ZONE ! WHAT NEXT ?

Bitcoin / U.S. dollar BITSTAMP:BTCUSD


H4 : Yesterday’s failure to first confirm upside clouds breakout and secondly
to breakout the former uptrend support line (also cluster of respectively
2 former trend line ) triggered a renewal selling pressure.
BTC is currently trading around an important level which is the clouds area
which as you can see is very thin, meaning very fragile too and also below the
recent uptrend line support, which started @ 31’025 !!!
So what next ?
1) On the upside :
In order to neutralise the ongoing downside risk, BTC should quickly recover above
the former high (@ 38’556) which also coincides roughly with the cluster above mentioned
of the two former support and resistance trend lines .
Such kind of price action would open the door for the 39’500 area (former congestion top),
then 40’000 (psychological level) ahead of the 41’000/41’500 area.
ONLY A SUSTAINABLE MOVE ABOVE THE LATTER ZONE WOULD FORCE TO A VIEW REASSESSMENT
OF THE EXPECTED BEARISH SCENARIO CALLING FOR AT LEAST A RETEST OF FORMER LOW 31’000/30’000
2) On the downside :
First significant support is @ 35’600 ahead of 34’735 (50 % Fibo ret & KS )
Below 33’850.
Interesting to note that the supports above mentioned coincides with the clouds projection…
CONCLUSION :
Watch shorter time frame to get clues for validation or invalidation of the clouds support area .
Recent price action is clearly showing a great uncertainty about further development (successive dojis !!)
Have a nice trading day and may your long goes up and your short goes down.
All the best, take care and have fun 🙂
Ironman8848

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