The anticipated break below the 43577.07 Fibonacci retracement has been delayed, as unwinding oversold daily stochastics prompt a bounce, clearing congestion around 48000 to reach 52000. Daily studies remain mixed/negative, however, suggesting any further tests above 52000 should prove difficult to maintain.
In fact, broader weekly charts are turning bearish, (stochastics are negative and the bullish proprietary Tension Indicator is flattening), suggesting this bounce is corrective in nature, and likely to give way to fresh losses.
In the coming sessions, risk remains for a deeper pullback in Bitcoin.
A close below the 43577.07 retracement will add fresh weight to sentiment and open up the 42000, monthly high of 8 January. Still lower is the 40089.68 retracement and congestion around 40000, where improving monthly charts could prompt fresh consolidation and renewed buying interest.
Looking further out, positive monthly charts highlight later continuation of the dominant bull trends. But current investors are likely to wait for better re-entry levels.
@Wicktator, Thanks a lot :) I got caught on my last update, and didn't anticipate the sharp bounce. There's no change to the bearish weekly tone, so I'm looking for a pullback in the coming days/weeks, before bullish monthly readings prompt fresh demand and we see consolidation/fresh gains. Mike
WicktatorFX
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@Michael_Macdonald-XATSUK, are you looking for more upside after this correction? See my chart below. This looks like a correction leading to more upside! Would love to hear your view on it :)
Michael_Macdonald-XATSUK
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@Wicktator, Hi there. I think we have risk in the coming days to see a break below the February lows. We could see a test of psychological support at 40000, where fresh buyers could appear. These 'round numbers' tend to generate speculative interest as traders and investors test the water. However, if we can see a close above 52000, then that will invigorate buyers once again, and open up the 58354~ high. The difficulty with current price action is that we're in no mans' land, and this usually generates a lot of push-pull before a new trend unfolds.