As in the previous TA, I mentioned WXY correction at 0.786 Fib level. We have now reached the support level. However, the market still looks very bearish and volume is pretty low. We still need to wait for other confirmation sign from 55 and 8 EMA, OBV and MACD to consolidate the bullish scenario. At the moment, EMAs are getting very close and MACD indicator is showing a series of higher higher and higher low. On the bright side, we can consider this as a bullish momentum. However, OBV still has a very strong bearish divergence on the one hour timeframe, so if the buy volume picks up to create a bullish divergence then we can say the correction has finished.
Bearish scenario is quiet scary. If the bull can't hold at 0.786 then we are heading a very steep bearish outlook in June. First BTC will test the Feb low at 6000 again. This is expected to have a very strong support as it creates a double bottom where missing out buyers will have a chance to enter at its all time low in 2018 so far. However, this level must hold strong and push the market back to a strong bullish momentum. Otherwise, we are looking at the next support level which is way steep down at 4400. This means that BTC will retrace all the way down to 1.618 (161.8%).
NOTE* - THINGS TO KNOW
According to my price action study on BTC over the years. Market characteristics show a very strong support at 0.786 so I would rather stay bullish than bearish with risk consideration at a tolerant stop loss level.
How do we find bullish price momentum? BTC's price action over the years shows a pretty interesting price action pattern. During a bull run, Fibonacci usually lands on 0.5 or 0.618 at the lowest with bullish divergence on OBV. So using independent indicators such as OBV, EMA and RSI can find confluence in price action and predict where the market is heading to.
Give me a thumbs up and follow if you find this article is useful.
Disclaimer
I am not a financial adviser so make sure you do your own research and manage your own risks.
Bearish scenario is quiet scary. If the bull can't hold at 0.786 then we are heading a very steep bearish outlook in June. First BTC will test the Feb low at 6000 again. This is expected to have a very strong support as it creates a double bottom where missing out buyers will have a chance to enter at its all time low in 2018 so far. However, this level must hold strong and push the market back to a strong bullish momentum. Otherwise, we are looking at the next support level which is way steep down at 4400. This means that BTC will retrace all the way down to 1.618 (161.8%).
NOTE* - THINGS TO KNOW
According to my price action study on BTC over the years. Market characteristics show a very strong support at 0.786 so I would rather stay bullish than bearish with risk consideration at a tolerant stop loss level.
How do we find bullish price momentum? BTC's price action over the years shows a pretty interesting price action pattern. During a bull run, Fibonacci usually lands on 0.5 or 0.618 at the lowest with bullish divergence on OBV. So using independent indicators such as OBV, EMA and RSI can find confluence in price action and predict where the market is heading to.
Give me a thumbs up and follow if you find this article is useful.
Disclaimer
I am not a financial adviser so make sure you do your own research and manage your own risks.