Hello friends, Bitcoin didn’t waste any time confirming my previous analysis. Prices pushed pass $8400 and quickly rose, however the price action was no good and we quickly retested $8400.
This does not come as a big surprise as we know the 1week candles still show massive bearish pressure on the market, as well as the confirmation of the longer term down trend line.
The bulls did a good job, but as we can clearly see there is more work to be done. The support at $8000 is failing now and at $7800 we will see the newb traders selling their $8400+ bags at a loss on the way down.
Remember that the trend is our friend and we will trade accordingly. I thought we had a nice diamond bottom forming and a good chance of a reversal.
However my support zones didn’t hold and it shows that the bulls are in for another beating.
Support is around $6000 for me on this drop, but I will keep some dry powder for the $4000 – $5000 zones, longer term speaking. Lets be patient and see what the market does.
We have a massive bullish divergence on the longer term chart, which will cause a massive price surge to the moon side. This could be anytime from now till April by my best guess.
Feel free to come and ask our advice on Discord. Safe trades.