As forecasted in the Weekly, BTC is slowly pushing towards 35.5-37k area of a possible big reversal. Today’s candle signaled indecision and the trend could flip any way. However, due to a strong bearish pressure on the monthly and weekly frames, the bearish odds are high. Let’s have a look at the details.
While the candle is indecisive, it has the bearish flavor if considered in the context with the previous candles. It has been rejected at both 8 and 20 EMA and is placed right between them.
– If BTC tomorrow closes above today’s high, the odds would shift to the bullish side.
– If BTC tomorrow closes below today’s low, the leg down would begin.
– A closure between 8 and 20 EMA would mean the decision is deferred by at least one more day.
The current monthly and weekly candle formations signal further decline.
The projection of the corrective waves on a mini-level is an extremely difficult task and its outcome is less reliable than the one from the candles forecast. Please keep this in mind.
The coin seems to be moving towards the targets I identified on Saturday’s Weekly (link below).
As soon as BTC reaches $35500, watch for the signs of reversal. Based on the waves structure, I believe the most likely level for reversal would be $36200. Keep in mind that the waves could form a diagonal/wedge that is a typical for waves 5, before a direction change.
If a sharp reversal does not happen this month (before the cut-off on June 30), the chance of a rally would increase greatly.
Again, the closure on June 30 is very critical.
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