In this daily chart of BTC I identify the 1W 200EMA (green line) as a pivotal line of past support (green arrow) that is now confirm resistance (red arrow) and suggest this as the level the currency corrective move upward might reach before returning to the downward trend. The proximity of the 1W 200EMA to the upper line of resistance of the long-term downward channel suggests a brief rally of around 15% to around the $26k level. That the 1D 100MA intersects the 1W 200EMA at the top of the channel structure is also a notable coincidence.
Fractal similarity exists with the RSI of March 21 bouncing off the 52.8 level, from which the last leg of the ABC corrective movement saw a brief 16.8% move to the upside after which price dropped back into the channel structure, with a similar role performed by the 1D 200MA (dark-blue line) in which resistance was confirmed at the peak of ‘C’.
In apparent confirmation of the fractal, I note also the crossing of the 1D 12MA (purple line) over 1D 50MA (golden line) on March 21 and the pending reoccurrence of this event in the next day or so.
To complete the fractal, a break to a new low is required after the peak. Previously, that break achieved a 47% decline from the peak at ‘C’. A similar decline from the anticipated peak at around $26k at (iv) will deliver a $12.2k decline to around $13.8K…which happens to be the untested support level of the June 25, 2019 intermediate peak.
Is this just all too coincidental to be trustworthy and price will continue to rally to new highs while interest rates are rising and inflation is everywhere, or is reality going to hit BTC hard in the next week or so?
Fractal similarity exists with the RSI of March 21 bouncing off the 52.8 level, from which the last leg of the ABC corrective movement saw a brief 16.8% move to the upside after which price dropped back into the channel structure, with a similar role performed by the 1D 200MA (dark-blue line) in which resistance was confirmed at the peak of ‘C’.
In apparent confirmation of the fractal, I note also the crossing of the 1D 12MA (purple line) over 1D 50MA (golden line) on March 21 and the pending reoccurrence of this event in the next day or so.
To complete the fractal, a break to a new low is required after the peak. Previously, that break achieved a 47% decline from the peak at ‘C’. A similar decline from the anticipated peak at around $26k at (iv) will deliver a $12.2k decline to around $13.8K…which happens to be the untested support level of the June 25, 2019 intermediate peak.
Is this just all too coincidental to be trustworthy and price will continue to rally to new highs while interest rates are rising and inflation is everywhere, or is reality going to hit BTC hard in the next week or so?
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