Hi guys!
Bitcoin had quite a bit of a pullback these past couple of days and it doesn't seems like its over just yet. So, here are my thoughts on bitcoin for today.
BTC - Daily Chart
Tools used: Fib-Channel, Trendlines and Stoch RSI
As you can see the current support is holding pretty well both the fib channel support and prior support (with 4 points of contact). However, the stoch RSI is in overbought territory and currently on a downward trend.
If this current trend continues and both support fail holding this price level, bitcoin might have another price crash (Bear Scenario). Here are two possible scenarios:
BTC - Daily Chart (Possible Price Crash Scenario #1)
Tools used: Trend-Based Fib Extension, Stoch RSI and Smoothen Moving Average
These would the be price area I'm looking at to buy the dip (around $7,500 - $6,300). Usually bitcoin bounce off from these fib levels and notice that SMMA(200) is travelling through this area as well. The previous pullback/price crash bounce off from this 200 day smoothen moving average.
However, if this SMMA(200) support fails we might a dipper pullback which is scenario #2
BTC - Weekly Chart (Possible Price Crash Scenario #2)
Tools used: Trend-Based Fib Extension
The weekly time frame gives you bigger picture of the current trend and the price target is slightly different (around $3,000 - $5,000). This could happen if the SMMA(200) support fails.
Now for the correction scenario (Bull Scenario).
BTC - Daily Chart (Possible Price Correction Scenario)
Tools used: Fib-Channel, Fib Retracement and Trendlines
If any of the support I mentioned above hold that means this was only a price correction before another run up. But we need to see bitcoin making higher lows for confirmation of an upward trend.
Happy trading guys! Hope you make lots of money today!
Disclaimer
You know the drill guys. This is just opinion and not a financial advise. Do you own research and decide your own trades. Cheers!