The course Bitcoin is preparing for a new rally
Monday, may 7, trades in a pair BTC/USD ended in the minus 2.98 percent. For two days the bitcoin fell against the dollar by 4.37% to $9370. If you take a fall from $9990 to $9182, it is made up 8.08%.
On the daily chart downward movement from $9990 looks like a classic correction, but buyers after yesterday’s fall to $9182 respond to any rustling of his sales. For example, in Asia during the last depreciation $9471 to $9305 buyers using leverage, long positions decreased from 30.9 to 30.3 thousand thousand (-0,5 thousand BTC).
I understand their fear, because after the breakout of the trend line (2) from a low of $6753 falling prices could accelerate to $8980-$9050. There is one important technical point. Despite the breakout of the trend line until price has diluted a minimum of $8818 from may 1, daily bullish trend from $6425 is considered unbroken.
Still think the upward movement is incomplete. Not enough of another bullish wave. The price drop has mixed the cards, and after the breakout of the trendline it will recover with great difficulty.
The current correction could become a phase of accumulation. If before the fall from $9990 growth potential was kept to $11,000, now at the breakout level of $10000 on the price pattern, the price can soar to $12900. If buyers are afraid to come the psychological level of $10000, then you should expect the depreciation of BTC to $7900.
Graph of Bitcoin exchange rate
1. Fast line crossed the slow stochastic.
2. The breakout of the trend line.
3. Top-down CCI crossed +100.
4. The rebound from the 61.8%.