BTC is Due for a Pullback

3 de jun. de 2019

We broke right through the high volume nodes. Firstly at 4k, than at 6k and finally we worked our way through the last major high volume node at 8k. So, that tells us that we are above the major areas of horizontal resistance. This is very intriguing. Pay attention to that breaking through the high volume nodes is confirmed by the green buying volume bars. Also the weekly closed above the two previous highs and that's significant.

But we are in need for a correction and at some point we will have it. So where is that point? From the time perspective – this week is the right time, because it is TD-9 sell.

Since mid May we’ve been waiting for reverse somewhere near 0.382 Fib in 9-9.5k area. Last week we saw an attempt to challenge it, but got rejected.
If we manage to go above 9-9.5k area this week (unlikely), things get very exciting, because there's very little built up volume above that area.

But look at how things develop on the weekly chart now: RSI is overbought, & starts going down; the last week closed as a doji reversal candle at the top of an uptrend! Current week is a 9 Sell. Does it mean that it has to take a nosedive this week of the week after? No, we may just get stuck in a flat range like we did in April, but BTC has been really asking for a correction and we would not recommend you to mess with this weekly TD-9.

Going below the previous weekly low is bearish.

The most likely place for the pullback to end is the support zone at 6-6.5k.


If you like the idea, please, hit the Like button and subscribe to the profile in order not to miss our updates.

The information given is never financial advice. Always do your own research.