Today, we'll look at the scenarios surrounding the trend reversal and how we can shape our buys, sells, and trades.
Brief Review:
The $25,240 mark has come very close to our January forecast, but is it really the bottom? The current subordinate highly volatile area supports the current sideways movement into the trend reversal. What happens now as we pass the apex on June 4th? For that, we look again at past scenarios, first to our closest scenario from 2018.
Are we seeing the same sequence, only smaller? This would set targets towards $7,500 for Bitcoin!
We also take a look at the MA lines to get a better comparison to see if there are indeed strong supports there. The 200 MA from the weekly chart would thus break sustainably. It has never been broken before and has always served as a sustainable bottom.
Is that really the case? We take a closer look at March 13, 2020, and find that the 200 MA was damaged and thus lost substance according to chart techniques, which would increase the likelihood of a break. Therefore, we look for the support that saved us on March 13, 2020. We arrive at the 3-week 100 MA in purple, with support at $17,000.
We look in the Gann for a corresponding pattern.
Conclusion:
The $31,000 to $32,400 range is currently the strongest resistance. The 200 MA from the week is invalid and could lose initial support, but the 100 MA from the 3 weeks is waiting with a higher probability for good buying opportunities.
If you want to leverage this, then consider good risk management or better yet, sign up for the TA Night Club or Gann Workshop, which starts for the last time this year on Monday, May 30th.
