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It is looking like we may see a retest of the current low around $7,200 and if that fails, then there's clear skies to retest $6,000. That's probably nothing new to you if you've been follow me or your own major support and resistance levels on Bitcoin over the last few months.
BTC 3-Day chart with EMA's and major support and resistance levels (pink lines)
So far, BTC has been a lot weaker than first thought. I was looking at a test of at least $9,500 before targeting the $11,000, but we barely scraped $9,200 and now we've seen the sell off to $7,500. The chart is looking like we are going to drop off a small cliff, which often leads to a bounce. So, I'm seeing it as a higher possibility that since we are testing the lows the first, that we may see higher prices sooner rather than later.
A couple more indicators I am watching for early signs of support are the EMA's, in particular the 50 (yellow), 100 (orange), and 200 (red). I have manually drawn in an extension to the lines on my roadmap (the rough extensions after the computer generated lines) to see how accurate I have been tracking the market. So far, so good but that's not saying much just yet with the limited data post my roadmap.
As you can tell from my writing, it's still quite indecisive. We are in a tight trading range with no clear direction and I'm still waiting for more clues for the direction besides what I wrote above.
It's time now to be patient and keep watching the charts with some fiat in reserve for the break below $7,200. Or if you're selling short, now might be a good time to add to your short position!
Happy trading and hodling!
Jason
