Let BTCUSD bears rest

Let BTCUSD bears rest

Here is #BTCUSD 1h chart.

We have:

  • downtrend channel a-b-c lines
  • important levels 1=7450, 2=7000, 3=6780, 4=6560.
  • three profiles, the shape of profile reveal gaussian bell curves. it means a temporary balance.

So what?

Firstly, note 1_2=450 and 2_4 also = 450 approx. It means that broken 1_2 balance should provide support at level 4 of 6560 dollar per bitcoin.

Secondly, the trading activity in the 3_4 zone is more active in comparison with the 2_3 zone. Note, they are equal in height.
Also note, 3-4 zone situated in b-c half of trend-channel. So, breaking down the b line coincides with the breakdown of the 3 level. This acceleration of decline should provoke the panic emotions among bitcoin traders. As you can suggest, Public panic selling is an opportunity for professional market operators to cover huge shorts they opened at market tops (say, at 7540).

What is next?

So, taking into account the facts above, we have to expect the stalling of decline. I do not expect wide dumps breakdowns in the nearest days. Any attempt to penetrate 4 level could easily turn into SLKB diversion (Trap for bears).

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