Hollowzep

BTC bounce at $38k or drop to $35k

COINBASE:BTCUSD   Bitcoin
BTC 4hr you can see a strong bearish divergence between price and rsi also correlating with lower volume for the same period prior to the breakdown after a 2nd attempt at the $42k level resistance. This failure along with price moving back into a long-term sideways channel and the Ichi base and conversion line cross-over to negative was enough confirmation for us to move the assets back onto the stable trains while the MM sorts out the squabble. We have $35k as the next critical support area with several key factors here. It's a previous POC level that was not tested on the breakout and the 200 ma is right here along with the 618 fib retracement creating a key area to watch for the next reversal pivot. Price at this time looks to be creating a bottom at $38k and could bounce from here being the 382 fib retracement level providing support. It is also very likely to be a false bottom here at $38k to get the leverage longs back on the book before a quick liquidation grab to $35k for a true reversal and bounce to $48k smashing through the $42k resistance

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