The market makes a pullback and this pullback is very scary. Yes, we waited for a pullback but not like this one that even all altcoins are bleeding heavily!
Let’s jump quickly into the action:
If we want to see a bullish market structure then we have to bounce upwards almost immediately because we are in the strong support area and break below could mean disaster!
Strong area (green triangle) and possible bounce criteria:
1. Round number $7000
2. May low
3. In the 4 hour chart 100 and 200 EMA which starts to work as supports
4. Trendline from wicks since 14.08
5. Trendline from bodies since 14.08
6. The market structure could make still a higher low which will be a very good sign
7. Bigger Fibonacci retracement level, pulled from 22.08 to 04.09, is 38%
8. Smaller Fibonacci retracement , pulled from 30.08 to 04.08, is between the two main levels: 62% and 70.5%
9. We have still an EMA golden cross on the 4h timeframe (100&200)
Targets: the maximum first target could be around $7280 but don’t know how the market and how people react to this “crash”. Definitely, AGAIN, people are superstition, scared and there is still panic in this market!
So, if we drop below those strong criteria’s and we get a close below the strong support area at $6767 then we have a lower lowe market structure and we are below the EMA’s which all indicates that the price may change from short-term uptrend to downtrend.
Also, we have a big continuation batter called “Rising Wedge”. Close below the rising wedge bottom trendline will indicate that the bigger trend may continue and the bigger trend is still downwards and we go and test the lower levels!
Hopefully, this quick overview helps You out a little bit to confirm Your own analysis!
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Have a nice week!
The price stops around $7000. Currently, we could see on the 5 min. chart that the price draws us a consolidation area / bearish continuation chart pattern called “Bear Flag”. What’s out if it breaks below! Currently, if we look at higher timeframes then we are still in this green area where we could make an HL (higher low)!