In my previous update, I was looking at BTC/USDT from a very horizontal perspective and I predicted to see a retest towards the $39,000 area before continuing its way down. However, the price ended up breaking this zone and managed to reach the $47,000 area.
Cryptocurrencies are all known for doing long and annoying retests after breaking a certain structure, that's their behavior. What's interesting now is that if we draw a diagonal support line, it looks like Bitcoin broke it and retested it with abc wave (iv) where strong trendline support could become resistance.
Not breaking above the yellow trendline will be an amazing short opportunity for new lows this year (Long-term trade). Our first target will be the 61.8% Fibonacci Extension level at $28,700 which is also a very critical support level as it is the previous wave 4 during the first bullish cycle.
Breaking $28,700 could push Bitcoin towards the 78.6% Fibonacci Extension at $23,600 and the 100% Fibonacci Extension level at $18,000.
Cryptocurrencies are all known for doing long and annoying retests after breaking a certain structure, that's their behavior. What's interesting now is that if we draw a diagonal support line, it looks like Bitcoin broke it and retested it with abc wave (iv) where strong trendline support could become resistance.
Not breaking above the yellow trendline will be an amazing short opportunity for new lows this year (Long-term trade). Our first target will be the 61.8% Fibonacci Extension level at $28,700 which is also a very critical support level as it is the previous wave 4 during the first bullish cycle.
Breaking $28,700 could push Bitcoin towards the 78.6% Fibonacci Extension at $23,600 and the 100% Fibonacci Extension level at $18,000.
