I thought it would be a good time for a little TA.
The downdraft has almost reached its 6 and 9 month cycle projections of 31,000. It decisively broke its 200 day MA. It broke down from a head and shoulders top, with a conventional measured move target of 34,000. It broke that. It is bouncing off the bottom of a downtrend channel. Cycle oscillators are in positive divergences.
All in all, this has the makings of a classic bottom. And there’s nothing more bullish than a head and shoulders top breakdown that doesn’t follow through. So there’s a chance that a really big rally could come from this setup.
OTOH, there’s likely to be a ton of resistance around 42,000-43.000. And one of the main raisons-d’etre for BTC’s popularity was the ability to hide criminal gains. Well, not so much anymore. The FBI almost never gets their man, but in this case they did, proving that BTCs anonymity maybe isn’t what it’s cracked up to be.
The long term story will be told if and when 42-43 k is tested. If it rolls over from there, or worse, doesn’t get there, the next downleg will make this one look like child’s play.
Stay tuned.
Addendum-
Meanwhile, on the hourly chart, BTC will hit resistance around 35,250 this morning.
