Bitcoin recently lost the $8k support.
Once that happened it looked like prices could continue to fall much lower, with many calling for $7,500 at the very least.
Some were even calling for a test of $6k after $7k was unlikely to hold.
However, prices bounced rather significantly off of the $7,700 area and popped all the way back up to $8,300.
That doesn't quit break the horizontal resistance around $8,400 but it is significant never the less.
Well, it may not, but then again, it might.
I like to look at past patterns to get an idea of what might happen this time around, after all, history doesn't always repeat, but it often rhymes.
Back in June of this year, we had a similar setup to what we just witnessed now.
Check it out:
(Source:
)https://twitter.com/CryptoWallStre1/status/1181280921263042574
- CryptoWallStre1
It's not exactly the same, but we had a retest of support for the 3rd time and then a break of the that downtrend leading into the retest.
Well, prices went on to rally roughly 80% in that month alone!
If that kind of price action were to repeat we would look for a move somewhere up near the year to date highs around $14k.
I am not fully expecting that much follow through in such a short time, but I would not be surprised to see us start to move back up here and challenge $10k again within the next few weeks.
Here's to seeing some rhyming action!
Stay informed my friends.
-Doc
