I have to admit the the yesterday's movement was so frustrated and unbiased. The bears was so strong even it has made a failed on the retesting previous broken resistance as support which I've posted on my previous idea. A lot of people and traders are so bearish on bitcoin lately no matter it's in the mid term or long term. But for me to identify any bias, I'll need a very detail analysis about this coin.
Here I use the basic fibonacci level and break out strategy. At first we must aware of the golden ratio level which in this case is perfectly rejected the price to break it, Right after the price gets rejected, it goes lower to test the support trend line that has been formed since July 28th. However this support trend line is so crucial. I'm expecting a dead cat bounce to $11500 - $11550 when the price touches this support trend line. But for longer term, my concern is the white region which previously acted as resistance zone that has been broken. Since the break out from the $10000 region, we've never seen any sign of phase 2 to retest this zone as support. Considering the $10000 region is a huge psychological number and the huge resistance zone previously, we might see a retest toward this zone. Another perspective is that this zone is having an alignment with the -0.618 fibonacci retracement level which usually is very important.
So, for short term I'm expecting a micro dead cat bounce to $11500 - $11550 zone before further potential drop toward the white support zone which acted as great support here. $10000 region could be touched in the next few weeks during this consolidation phase.
Here I use the basic fibonacci level and break out strategy. At first we must aware of the golden ratio level which in this case is perfectly rejected the price to break it, Right after the price gets rejected, it goes lower to test the support trend line that has been formed since July 28th. However this support trend line is so crucial. I'm expecting a dead cat bounce to $11500 - $11550 when the price touches this support trend line. But for longer term, my concern is the white region which previously acted as resistance zone that has been broken. Since the break out from the $10000 region, we've never seen any sign of phase 2 to retest this zone as support. Considering the $10000 region is a huge psychological number and the huge resistance zone previously, we might see a retest toward this zone. Another perspective is that this zone is having an alignment with the -0.618 fibonacci retracement level which usually is very important.
So, for short term I'm expecting a micro dead cat bounce to $11500 - $11550 zone before further potential drop toward the white support zone which acted as great support here. $10000 region could be touched in the next few weeks during this consolidation phase.
