Important support levels for this BTC correction
So apparently BTC doesn't want to push for 10k just yet, and needs to rest a little.
But how low can it go?
We can identify important support levels by the Fib retracement for the whole move from 3200 to 8500, and with the volume profile.
We can see that 6500 is the most important support level. If it holds, then we see a resuming of the rally from that level.
If it should break however, I see the 5700 of not very important. The volume profile there indicates that it will offer weak support, and it will break down to the 5100 level, which therefore has a higher probability of happening than the 5700 level.
So it depends all on wether the 6500 support will hold.
Either way, I see this here as a necessary correction, because the weekly Stoch RSI has been on 100 ultra overbought for many weeks now.
We will see a resuming of the rally in the coming months and pushing towards 10k and even beyond.
But how low can it go?
We can identify important support levels by the Fib retracement for the whole move from 3200 to 8500, and with the volume profile.
We can see that 6500 is the most important support level. If it holds, then we see a resuming of the rally from that level.
If it should break however, I see the 5700 of not very important. The volume profile there indicates that it will offer weak support, and it will break down to the 5100 level, which therefore has a higher probability of happening than the 5700 level.
So it depends all on wether the 6500 support will hold.
Either way, I see this here as a necessary correction, because the weekly Stoch RSI has been on 100 ultra overbought for many weeks now.
We will see a resuming of the rally in the coming months and pushing towards 10k and even beyond.
What would be the crazier of the two? Well the push to 10k. And at the moment, BTC seems to favor crazy stuff that most wouldn't expect. Therefore I am more bullish inclined at the moment.