If BTC loses $29K support, where will the bottom form? If previous major resistance tends to become future major support, then to predict BTC's bottom you need to determine previous major resistance.
Reasoning:
- Major future support = previous major resistance.
- $10,000 - $14,000 was a strong multi-year resistance area leading up to the most recent bull run.
- Once broken, there was very little resistance at the $20,000 level before price blasted higher, despite $20K being the 2017 all-time-high (you'd figure sellers would be there).
- Therefore, $20,000 was not previous major resistance, since there was relatively little price action at that level overall.
- Previous major resistance is the $14,000 - $10,000 zone.
- Therefore, future major support is most likely $14,000 - $10,000.
***$20,000 is a strong psychological support level, but not probable as major support from a price-action perspective.
I hope I am wrong.
Adrian
Reasoning:
- Major future support = previous major resistance.
- $10,000 - $14,000 was a strong multi-year resistance area leading up to the most recent bull run.
- Once broken, there was very little resistance at the $20,000 level before price blasted higher, despite $20K being the 2017 all-time-high (you'd figure sellers would be there).
- Therefore, $20,000 was not previous major resistance, since there was relatively little price action at that level overall.
- Previous major resistance is the $14,000 - $10,000 zone.
- Therefore, future major support is most likely $14,000 - $10,000.
***$20,000 is a strong psychological support level, but not probable as major support from a price-action perspective.
I hope I am wrong.
Adrian